By Jelena Pajic
The European Bank for Reconstruction and Development (EBRD) is stepping up its support for micro, small and medium-sized enterprises (MSMEs) in Montenegro through a long-term partnership with micro-credit institution Alter Modus.
The Bank has agreed to provide funding to Alter Modus for three projects, for a total of €10 million:
A loan of up to EUR 4 million(US$2.2million) will be provided under the EBRD’s Financial Intermediaries Framework (“FIF”). Under this project, the EBRD will provide its continued support to long-standing and well-managed MSME-focused partner Alter Modus and underserved MSMEs.
A loan of up to €2 million will be provided under the EBRD’s Western Balkans Youth in Business Programme. EBRD’s Youth in Business flagship programme for on-lending to companies that are owned or managed by entrepreneurs under the age of 35. This loan, the second for Alter Modus under the programme, will help young entrepreneurs surpass obstacles in accessing finance, and will be combined with advisory services that provide the necessary know-how to grow these businesses. The loan will additionally address the shortage of credit available to youth MSMEs and directly tackles the credit gap in Montenegro. The advisory support is backed by the government of Sweden, the government of Italy through the Central European Initiative, and Luxembourg.
A loan of up to €4 million will be provided under the Western Balkans Women in Business Programme Phase II. This will be AM’s second loan under the programme. The project aims to promote women entrepreneurship and more broadly women’s participation in business, by enhancing access to finance and know-how for women led MSMEs.
Alter Modus is a leading micro-finance institution in Montenegro. Alter Modus has been the only EBRD client in the micro-finance sector in Montenegro since 2004 with a very strong track record consisting of multiple credit lines.
EBRD Head of Montenegro, Remon Zakaria said: “We are delighted to extend our strong partnership with Alter Modus in empowering MSMEs, a critical pillar of Montenegro’s economic landscape. Alter Modus’ proven track record in supporting these businesses through EBRD financing gives us great confidence in the far-reaching impact of this initiative. By focusing our investment on women and young entrepreneurs, we reaffirm the Bank’s commitment to fostering an inclusive and resilient private sector.”
CEO of Alter Modus, Ana Kentera, added: “We are very pleased to celebrate our twenty-year partnership and cooperation with the EBRD through arrangements aimed at the segments MSME, women in business, and youth in business. These market segments, recognized for their difficult access to finance, are crucial for us in fulfilling our mission and purpose. Through these credit lines, we will support the development of entrepreneurship and strengthen the competitiveness of micro and small enterprises, female entrepreneurs, and young people who have embarked on the adventure of entrepreneurship. Thanks to our collaboration with the EBRD and programmes specialized for sensitive market segments, we are also developing partnerships with other institutions that can provide additional non-financial benefits to clients. Through joint efforts, we contribute to building a more sustainable and resilient economic environment in Montenegro, and the progress is evident.”
Since the EBRD began operations in Montenegro in 2007 it has invested €874 million in 89 projects. The Bank’s priority for the country is to support private sector competitiveness, the green transition and further integration into regional and global markets.
