EFSE provides EUR 20 million to Serbia’s Komercijalna Banka

Ohrid, FYR Macedonia, June 09, 2010 – The European Fund for Southeast Europe (EFSE) announced today during its annual meeting in Ohrid, FYR Macedonia, that it is providing Serbia’s Komercijalna Banka a.d. Beograd with a loan of EUR 20 million. Komercijalna Banka a.d. Beograd will use the proceeds to finance investments and working capital with long-term loans worth up to EUR 100,000 for local micro and small enterprises (MSEs) and individual entrepreneurs, which play a critical role in the private sector in Serbia.

Komercijalna Banka a.d. Beograd is one of Serbia’s largest banks in terms of assets with 25 branches and 253 outlets it also has the largest network in the country.

The current loan to Komercijalna Banka a.d. Beograd is EFSE’s second loan to the Bank to refinance MSE loans, following a EUR 20 million loan in May 2009.

EFSE's first loan to the bank of EUR 20 million has already had a strong developmental impact by helping create new jobs, accelerating business growth among MSEs and increasing confidence in the banking sector in Serbia.

"EFSE’s loan to Komercijalna Bank in 2009 is being successfully implemented, and we are pleased to support the bank again", said Dr. Klaus Glaubitt, Chairman of the Board of Directors of EFSE. “Through financially sustainable institutions like Komercijalna Banka, EFSE can support the growth of small business which is a key element for the stable economic growth of Serbia.”

“Komercijalna Banka has an exceptionally important role in the banking sector of Serbia and understands the great potential for investment in entrepreneurs, micro and small enterprises; therefore, we find the continuation of our partnership extremely important. The first EFSE loan has resulted in an increase in financing to entrepreneurs, micro and small enterprises, which are the foundation of the Serbian economy. We are certain that this loan will enable and improve private entrepreneurship in Serbia and benefit the entire economy,” stressed Mr. Dragan Santovac, Deputy President of the Executive Board of Komercijalna Banka.

EFSE began its operations in Serbia in 2005. Since the start of its involvement in the country, EFSE has offered approximately EUR 94 million in financing to 7 local commercial banks and specialised small-business banks in total. These partner lending institutions have on-lent over EUR 210 million of EFSE funds in the form of roughly 30,000 business loans to MSEs. Moreover, EFSE has provided technical assistance to partner lending institutions in Serbia to help expand their lending to MSEs and promote responsible banking practices.

About the European Fund for Southeast Europe (EFSE)
The microfinance fund European Fund for Southeast Europe (EFSE) is aimed at fostering economic development and prosperity in Southeast Europe, including Albania, Armenia, Azerbaijan, Belarus, Bosnia and Herzegovina, Bulgaria, FYR Macedonia, Georgia Kosovo, Moldova, Montenegro, Romania, Serbia and Ukraine. It offers long-term funding instruments to local financial institutions for on-lending loans to small business, in particular to micro and small enterprises (MSEs), as well as housing loans to low-income private households. The activities of EFSE are supported by the EFSE Development Facility, which provides funding for capacity building support to partner lending institutions, as well as awareness raising and market enabling activities. Initiated by KfW (The German Development Bank), the EFSE is a Public-Private Partnership that combines public funding and capital from private investors.

About Komercijalna Banka
Komercijalna Banka has been known as a strong, recognizable and respectable financial institution for over 40 years and is one of the top banks in the region. According to many indicators, the Bank is a leader in the Serbian financial market. It has a wide branch network, 25 branches and 253 outlets in Serbia, and offers complete banking services and products to over 700,000 customers domestically and abroad. The Bank has two subsidiaries, Komercijalna Banka a.d. Budva in Montenegro with over 15 branches and Banja Luka in Bosnia and Herzegovina with 16 branches and agencies.  Komerciajalna is also a custody bank for several funds, including its own investment fund, KomBank Invest.Komercijalna Banka is considered the best bank in the country and is highly regarded by the public.  According to recent market research conducted by independent research agencies on the banking sector, citizens have a high level of confidence in the Bank.  Further, the Bank has maintained its leading market position in the Serbian banking sector for many years. Komercijalna Banka has sponsored numerous financing programs for large corporate entities and small and medium enterprises, which have provided a high level of support to the Serbian economy. The Bank benefits from improved efficiency, up to date software, numerous organizational enhancements, including best practice management processes and a strong client service orientation.  These factors have increased client satisfaction, resulting in stable market share of over 10% of the Serbian banking sector in 2009.

For further information about Komercijalna Banka, please visit: www.kombank.com

Media contact

European Fund for Southeast Europe  Mr. Samir Djikić, Communications Manager, EFSE Tel: +49 (0)69 / 977 876 50-26 E-mail: press@efse.lu

Komercijalna banka  Jugoslava Smiljković Tel: +381 11 30 80 220 Mobilini: +64 24 011 34 E-mail: jugoslavas@kombank.com