The European Fund for Southeast Europe (EFSE) issued a €15m senior loan to Serbia’s Komercijalna Banka a.d. Beograd (Komercijalna Banka) in a bid to support the bank’s housing and home improvement loan business.
While Komercijalna Bank is a longstanding EFSE partner lending institution, this is the first credit facility specifically dedicated to housing and home improvement, the Serbian Government holds a 42.6% stake in Komercijalna Bank, alongside investors such as German Investment Coorporation DEG, a subsidiary of KfW Development Bank (KfW), and Swedfund.
“Additional funding provides a solid basis for even more extensive and improved support of clients’ needs in what is perhaps the most important relationship with the bank and a very important personal decision. This credit arrangement will further improve our competitiveness and market position, which are already above average,” said Dragan Santovac, deputy president of the Executive Board of Komercijalna Banka.
The European Fund for Southeast Europe (EFSE) was initiated by German KfW with the financial support of the German Federal Ministry for Economic Cooperation and Development (BMZ) and the European Commission (EC).
It aims to foster economic development and prosperity in Albania, Armenia, Azerbaijan, Belarus, Bosnia and Herzegovina, Bulgaria, Croatia, former Yugoslav Republic of Macedonia, Kosovo, Georgia, Moldova, Montenegro, Romania, Serbia, Ukraine and Turkey.