EFSE and UniCredit Bank sign EUR 25 million loan facility agreement - EUR 15 million for micro and small enterprises, EUR 10 million for housing loans

The European Fund for South Eastern Europe (EFSE) has signed a EUR 25 million loan facility with UniCredit Bank Serbia, the bank said in a release today.

Of that amount, EUR 15 million are earmarked for expediting the bank's lending to micro and small enterprises, while EUR 10 million will support UniCredit's housing and home improvement loan program.

The EFSE was established by KfW Development Bank (KfW) with the financial support of the German Federal Ministry for Economic Cooperation and Development (BMZ) and the European Commission.

- UniCredit Bank is an important bank for micro and small enterprises and households in Serbia. This new loan facility will provide long-term funding to the Fund's key client groups in Serbia through the bank's country-wide network of 74 branches - said EFSE Executive Board Chairman Monika Beck.

UniCredit is the third largest bank in Serbia with a market share of approximately 8 percent.

With its strong history of corporate clients, who currently account for about 75 percent of its loan portfolio, it was a logical step forward for the bank to make use of this knowledge for the benefit of micro and small enterprises.

Housing loans, which currently account for over 40 percent of the loan portfolio for physical persons, represent the second strong pillar of UniCredit's activities in Serbia, the release reads.