Serbian companies increased their borrowing significantly in the second quarter, with corporate credit expanding alongside tighter lending conditions and more demanding bank requirements. Corporate loans were 11.7% higher year on year in June, while new corporate lending reached RSD 436.4 billion, or about €3.7 billion, in the second quarter. That represented a 27.2% increase compared with the same period a year earlier.
The structure of new lending also showed strong demand for business financing. About 58% of new loans were directed towards liquidity and working capital, while 28% were investment loans.
Investment Lending and SME Borrowing
Investment credit accelerated during the period, with outstanding investment loans rising 14.6% year on year. Micro, small and medium-sized enterprises accounted for approximately 65% of the increase in corporate loans during the second quarter, while their total borrowing increased 12.6% year on year.
At the same time, access to credit was accompanied by tighter bank requirements. Banks reported stricter corporate lending standards during the quarter, citing funding costs, competition, risk perceptions and broader uncertainty. Lenders also tightened conditions relating to pricing, fees, collateral, maturities and maximum loan amounts.
Financing Costs and Structuring Requirements
Average interest rates on new corporate lending reached about 7.1% for dinar-denominated loans and 5.1% for euro and euro-indexed loans. Smaller companies generally faced higher borrowing costs than large corporate borrowers. The combination of strong demand for financing and more stringent underwriting requirements is increasing the relevance of financial services covering financial modelling, debt structuring, covenant management, refinancing, working-capital optimisation, factoring and supply-chain finance.
Export Receivables and Investment Financing
Export-oriented companies have additional financing options as expanding exports generate receivables that can support factoring, export-credit insurance and invoice financing. Industrial companies investing in equipment can also combine commercial bank borrowing with financing from development banks and international financial institutions. The PWO project in Čačak, valued at €31 million, provides an example of this financing structure. The investment combines €15 million in EIB financing, company funds and Serbian public support.
Energy and Compliance Requirements
Energy and CBAM requirements add another layer to corporate financing and investment preparation.
Banks financing industrial facilities increasingly require reliable information on energy costs, environmental exposure and compliance with export-market requirements. Renewable-energy projects similarly require structured technical, legal and commercial due diligence as part of the financing process. As corporate borrowing expands while underwriting requirements become more detailed, financing preparation is increasingly linked to companies’ ability to present investment projects, operating requirements and financial risks in a form suitable for lenders.
