The European Bank for Reconstruction and Development (EBRD) is providing a 10 million euro financing package for micro, small and medium-sized enterprises in Montenegro, to be channelled through Alter Modus. The funding is intended to improve access to finance across the country, including for businesses operating outside Podgorica, the EBRD said.
The package comprises three credit lines: seven million euros for micro, small and medium-sized enterprises, two million euros under the Women in Business programme and one million euros under Youth in Business. The largest line will finance investment and business expansion by private companies in Montenegro.
At least 20% of the seven-million-euro facility is expected to support investments that improve energy and resource efficiency. The EBRD said green investment can support private-sector development and more sustainable business solutions while helping firms finance their investment needs.
The two-million-euro Women in Business facility is aimed at expanding access to finance for micro, small and medium-sized enterprises led by women. It forms part of a wider initiative to improve business opportunities for women entrepreneurs in the Western Balkans and is intended to help more women-led firms obtain funds for development.
Under the Youth in Business programme, one million euros will be available to companies owned or led by entrepreneurs under 35. The credit line is intended to improve young entrepreneurs’ access to finance and support the development of their business ventures.
EU support and EBRD investment record
The European Union is supporting both targeted credit lines through the European Fund for Sustainable Development Plus (EFSD+), providing partial risk coverage and technical assistance at programme level. Luxembourg and Italy are also backing the Women in Business and Youth in Business facilities through the Central European Initiative.
Ekaterina Solovova, the EBRD’s head in Montenegro, said micro, small and medium-sized enterprises were “an important driver of Montenegro’s economy, creating jobs and contributing to growth across the country.” She said cooperation with Alter Modus and EU support should improve access to finance, particularly for women-led businesses and young entrepreneurs.
Alter Modus Executive Director Ana Kentera said the package would allow the company to support more businesses throughout Montenegro, especially firms led by women and young people, as well as companies seeking to develop more sustainable business solutions.
Bernard Brunet, head of the Cooperation Section of the European Union Delegation to Montenegro, said developing new and innovative companies was important for the country’s sustainable economic development and its preparation to use opportunities in the EU single market after accession.
The EBRD has worked with Alter Modus in Montenegro since 2004. It has invested 1.1 billion euros in the country through 116 projects, supporting sustainable development, infrastructure, private-sector growth and regional integration.
