BELGRADE – Loans to Serbian small and medium-sized enterprises (SMEs) accounted for around 67% of total corporate loans in 2025, yet smaller firms continued to face higher borrowing costs than large companies, the European Commission said in its Serbia 2026 Report, dated 4 November 2026.
The report describes public credit-guarantee schemes as underdeveloped and says collateral constraints remain important for SMEs. Their large share of bank credit has not closed the borrowing-cost gap.
SMEs account for nearly all businesses in Serbia and most private employment, while larger foreign-owned companies dominate exports. Affordable long-term finance could help domestic suppliers invest in equipment, certification, digitalisation and working capital needed to win contracts from multinational customers.
Serbia’s banking system has the capital and liquidity to lend, making improved risk-sharing and alternative finance the next step identified in the report. It proposes better guarantee schemes, credit information and capital-market instruments to reduce the borrowing-cost gap and help more SMEs become regional industrial suppliers rather than local service providers.
