EBRD provides €25 million guarantee for CKB: Support for domestic micro, small and medium-sized enterprises
The European Bank for Reconstruction and Development (EBRD) has provided a portfolio-level guarantee worth €25 million to Crnogorska Komercijalna Banka (CKB), enabling stronger support for domestic micro, small and medium-sized enterprises, the EBRD announced.
“This instrument will allow Crnogorska Komercijalna Banka to expand its credit support and reach a greater number of businesses most in need of financing. The project has been implemented with the support of the European Union through the EFSD+ guarantee programme,” they emphasised.
Based on this agreement, they said, the EBRD will make available to CKB a portfolio guarantee of up to €25 million, enabling a total credit allocation of up to €50 million in new loans to MSMEs through the EBRD’s risk-sharing instrument (RSI).
“The guarantee covers up to 50 per cent of the credit risk on loans approved by CKB, thereby significantly reducing financial barriers for businesses that require funds for growth,” they noted.
They added that the initiative is supported by technical assistance and a counter-guarantee for potential losses from the EU’s European Fund for Sustainable Development Plus (EFSD+).
“This is the first instrument of its kind that the EBRD is implementing in Montenegro. A particular focus is placed on enterprises that are under-represented in the market, including those owned by women, young entrepreneurs, and those from rural areas, all to foster inclusive economic development,” they stressed.
They point out that by sharing risk, the EBRD and the EU are helping CKB strengthen its resilience and expand the availability of credit resources for MSMEs using its own funds.
“Such an approach combines innovative financial instruments with targeted forms of support, opening new opportunities for the private sector in Montenegro,” they underline.
Remon Zakaria, Head of the EBRD Office in Montenegro, stated that cooperation with CKB, supported by the EU, represents a significant step forward in joint efforts to expand access to financing for businesses most in need.
“By sharing risk and combining innovative financial instruments with targeted technical advice, we are enabling a larger number of small and medium-sized enterprises to invest in the growth and development of their businesses,” Zakaria said.
Bernard Brunet, Head of Cooperation in the Delegation of the European Union to Montenegro, points out that the EU is committed to supporting inclusive economic development in Montenegro.
“Through these guarantees, we aim to encourage new or innovative projects by women entrepreneurs, young entrepreneurs, and MSMEs seeking financing from CKB Bank. Montenegro’s EU accession perspective opens new opportunities for entrepreneurs, and we are confident that these EU guarantees will encourage the realisation of new projects. We are proud of our long-standing partnership with the EBRD, which enables close cooperation with domestic banks in our joint efforts to develop the private sector,” he stated.
Tamaš Kamaraši, Chairman of the Management Board of CKB, emphasised the importance of this cooperation for the bank and Montenegro’s financial sector.
“Partnership with the EBRD and the EU represents a turning point for CKB and the domestic financial sector. As the first bank in the country to introduce a portfolio-level risk-sharing instrument, we reaffirm our commitment to innovation and to empowering micro and small enterprises. This facility allows us to direct financial resources to where they are most needed, strengthening the resilience and sustainable growth of Montenegro’s economy. We greatly appreciate the trust and partnership of the EBRD and the EU in achieving this shared vision,” he said.
As concluded, the EBRD is one of the leading institutional investors in Montenegro, with more than €1 billion invested, supporting sustainable development, infrastructure, private sector growth, and the country’s regional integration.
