• €260 million in EBRD loans, €50 million in EU grants to promote SME competitiveness and upgrades to EU standards in the Western Balkans region
• SMEs in Montenegro can currently access €3 million in EBRD loans through CKB bank
• EU grants to help make investments more affordable for small firms

Small and medium-sized enterprises (SMEs) in Montenegro will have more opportunities to increase their competitiveness with a new programme launched by the European Bank for Reconstruction and Development (EBRD) and the European Union (EU) in cooperation with Crnogorska komercijalna banka (CKB).

The programme, officially launched in Podgorica today, combines EBRD loans and EU-funded grant incentives, which will be lent to small businesses in partnership with local commercial banks. 

SMEs will be able to apply for funds to invest in new equipment and upgrades that can help them boost their productivity, cut operational costs, increase energy efficiency and improve their alignment with EU standards. In addition to loans, SMEs will benefit from grant incentives worth up to 15 per cent of the total loan amount, funded by the EU.

The aim is to help SMEs to go beyond their usual operations and invest in becoming more competitive in local and EU markets.

Remon Zakaria, EBRD Head of Montenegro, said: “Supporting the competitive development of the private sector is among our most important strategic priorities in Montenegro. SMEs are a backbone of Montenegrin economy and we are united with our partners: the EU and commercial banks to help them recover, strengthen their ability to export to the EU, and speed up the transition to a greener, more sustainable economy.”

“With this programme, the EU will provide €50 million in grants to promote SME competitiveness in the region. Montenegrin SMEs will benefit from EU-funded grant incentives worth up to 15% of the total loan amount. In that way, we will help make investments more affordable for small companies”, said the Deputy Head of the EU Delegation to Montenegro, Riccardo Serri.

He added that in order to help the Montenegrin business community to tackle the challenges they are facing, the EU has come up with a number of support programmes, including non-refundable grants, loans, and guarantees.

Specialised credit lines are currently available to Montenegrin SMEs at CKB bank, to which the EBRD has extended a total of €3 million in loans.

Tamás Kamarási, the Chairperson of CKB Management Board said: “CKB has been largely focused on supporting SMEs and we gladly take every opportunity to be part of initiatives that strengthen and advance this important segment of the Montenegrin economy. I am convinced that the allocated funds and advisory support will facilitate businesses to adjust to the European standards of business, further expand their capacities, and ultimately become competitive beyond the borders of Montenegro. The EBRD’s SME Competitiveness Programme has been implemented in all Western Balkans countries with the aim of helping countries improve access to finance for local SMEs. More than 900 businesses have benefited from the regional programme so far.”

In addition, SMEs will have access to advisory support through the EBRD’s Advice for Small Businesses Programme. The programme enables companies to engage local and international consultants to identify challenges and through transfer of know-how work on following topics such as strategy, marketing, digital transformation, export, energy efficiency, financial management etc.