EFSE provides new EUR 5 mil MSE loan to NLB Montenegrobanka

Loan to improve access to finance for low-income borrowers

Frankfurt am Main and Podgorica, April 24, 2008 – The European Fund for Southeast Europe (EFSE), one of the largest microfinance investment funds worldwide, is providing a new EUR 5 million loan to NLB Montenegrobanka a.d., Podgorica/Montenegro. This loan will support the Bank's expansion into the micro and small enterprise (MSE) lending sector, in particular by facilitating downscaling into micro loans for low-income borrowers who are still financially underserved.

Klaus Maurer, Chief Investment Officer of EFSE, said, "As micro and small businesses play an important role in promoting economic development, it is crucial that they are supported with access to finance to help them develop their businesses. EFSE's loan will enable NLB Montenegrobanka to achieve just that."

NLB Montenegrobanka is one of the largest commercial banks in Montenegro with a strong position in local MSE lending. Mira Laković, Chief of the CEO cabinet, said, "I am pleased that EFSE has demonstrated repeated confidence in NLB Montenegrobanka. This new loan will enable the Bank to provide further financial assistance to local micro and small businesses, which are a key priority for NLB Montenegrobanka."

Boosting Montenegro's private economy
This latest EFSE loan builds on the Fund's continuing support not only for the MSE sector in Montenegro, but also for private households, in that it provides them with funds for home improvement, housing reconstruction and purchase. In Montenegro, the Fund has already extended more than EUR 50 million to five financial institutions (commercial bank, microfinance banks, micro-credit organizations) in the country, hereby fostering economic development and prosperity, as well as creating new jobs in Montenegro.

About the European Fund for Southeast Europe:
The European Fund for Southeast Europe (EFSE) is one of the largest microfinance investment funds worldwide. Aimed at fostering economic development and prosperity in Southeast Europe, the Fund offers long-term funding instruments to local financial institutions in the region for on-lending to micro and small enterprises as well as to lowincome private households for housing purposes. In support of the Fund's financial investment activities, the EFSE Development Facility organises and co-finances technical assistance and training for capacity building of partner lending institutions. The Fund is a public-private partnership. Its capital base is jointly constituted by donors, development finance institutions and private institutional investors. Germany's KfW is the Initiator and Promoter of the Fund. The Fund Manager is Oppenheim Asset Management Services S.a.r.l. Frankfurt School of Finance & Management acts as advisor and supports the fund management. The Fund operates in Bosnia and Herzegovina, Romania, Serbia, Kosovo, Montenegro, Moldova, FYR Macedonia, Albania and Bulgaria, and is expected to start operations in Ukraine within the coming months.

In Montenegro, EFSE began operations through its predecessor, the European Fund for Montenegro (EFM), in 2001. Total investments in Montenegro amount to more than EUR 50 million, as of March 31, 2008. The number of active sub-borrowers with an EFSE-refinanced amounts to 8,100. For more information visit www.efse.lu.

About NLB Montenegrobanka:
NLB Montenegrobanka a.d. Podgorica is a Bank with a very long tradition dating back to 1905, when the first Montenegrin bank was established in Cetinje. Through different forms of organization and under different names, the Bank has been working almost continuously up to 1990.

In November 2002, the Government of Montenegro published a tender notice declaring the sale of the majority of shares to a strategic partner. In May 2003, after the completion of the privatization process, a contract with NLB Ljubljana was signed. Four months later, the Bank formally and legally became a member of the NLB Group.

On January 1, 2006, Euromarketbanka Podgorica merged with the Montenegrobanka NLB Group, according to the contract of merger. Since then, the Bank has been performing its activities as NLB Montenegrobanka joint-stock company Podgorica.

Media contacts

EFSE Mr. Samir Djikić, Communications Manager Tel: +49 (0)69 9778 7650-26 E-mail: press@efse.lu

Adrijana Stevanović Tel: +382 81 244 504 E-mail: stevanovic@efse-fs.org