EBRD to offer $29m guarantee to CKB for MSMEs in Montenegro

Core Insights - The European Bank for Reconstruction and Development (EBRD) is providing €25 million ($29 million) in unfunded risk-sharing guarantees to Crnogorska komercijalna banka (CKB) to enhance lending for micro, small, and medium-sized enterprises (MSMEs) in Montenegro [1][2] - The initiative is supported by the European Union (EU), which is offering technical support and a first-loss counter-guarantee through the European Fund for Sustainable Development Plus (EFSD+) program [1][2] - This collaboration aims to enable up to €50 million in new SME lending, with the guarantee covering up to 50% of the credit risk on loans issued by CKB [2][3] EBRD and CKB Collaboration - EBRD's Montenegro head, Remon Zakaria, emphasized that this partnership marks a significant milestone in expanding access to finance for underserved businesses in Montenegro [2] - The risk-sharing arrangement allows CKB to lend using its own funds while sharing part of the risk through the EBRD and EU-backed structure [3] - CKB management board chair, Tamás Kamarási, highlighted that this collaboration represents a landmark achievement for both CKB and Montenegro's financial sector [4] Financial Instruments and Impact - The new portfolio risk-sharing (PRS) facility is the first implementation of this product by EBRD in Montenegro [5] - EBRD has previously invested over €1 billion in Montenegro, focusing on sustainable development, infrastructure, private sector progress, and regional integration [4] - Last month, EBRD also announced €20 million in financing to NLB Banka Prishtina to support SMEs in Kosovo, particularly in digital development [5]