The European Bank for Reconstruction and Development (EBRD) continued with support to micro, small and medium enterprises (MSME) in Montenegro through long-term partnership with Micro-credit Financial Institution Alter Modus.
EBRD will ensure financing for Alter Modus within three projects in total amount of 10 million euro;
- Credit support up to EUR 4 million will be provided through Financial Intermediaries Framework (“FIF”). Through this line, EBRD will continue with providing support to long-term and well-managed partner Alter Modus, focused on SMEs, as well as insufficiently supported MSEs.
- Credit support in the amount of EUR 2 million will be provided within the Western Balkans Youth Employment Programme EBRD’s leading programme Youth in Business is dedicated for further lending to companies owned or managed by entrepreneurs under the age of 35. This credit line, the second for Alter Modus under this programme, will help young entrepreneurs overcome obstacles in accessing finance, and will be combined with advisory services that provide the necessary know-how for development of these businesses. The purpose of the line is to provide the missing financial assets for SMEs managed by youth and directly tackles the credit gap in Montenegro. Advisory support is provided by the governments of Sweden and Italy through Central European Initiative, and Luxembourg.
- Credit support in the amount of EUR 4 million will be provided within the Western Balkans Women in Business Programme Phase II. This is also the second credit line for Alter Modus under the programme. The aim of the project is to promote female entrepreneurship and more broadly women’s participation in business, by enhancing access to finance and know-how for SMEs led by women.
Remon Zakaria, EBRD Head of Montenegro, 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.”
Ana Kentera, Chief Executive Officer of Alter Modus, 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.”
Alter Modus is the leading micro-credit financial institution in Montenegro and has been the only EBRD’s client in micro-finance sector in Montenegro since 2004 with very successful results referring to several credit lines on which these two institutions collaborate.