December 8 (SeeNews) - The European Bank for Reconstruction and Development (EBRD) said it has approved a loan of 2.3 billion dinars (19.6 million euro ($22.06 million) to OTP Banka Serbia aimed at supporting small and medium-sized enterprises (SMEs) in the country.
The credit line is meant to facilitate recovery and development of private businesses in economically lagging parts of Serbia through working capital lines and investment loans, the EBRD said in a statement on Tuesday.
"We are particularly pleased that we are signing a credit line in local currency, as it will help strengthen confidence in the financial system," Aleksandra Vukosavljevic, the EBRD Director for financial institutions in Western Balkans and Eastern Europe, commented.
Euro loans account for more than 60% of the banking sector’s loan portfolio in Serbia, the EBRD noted.
The EBRD also said that with its wide regional outreach and focus on SMEs, OTP Banka Serbia has the potential to provide financing to smaller businesses and contribute to the development of SMEs across the country.