MICROCAPITAL BRIEF: EBRD Loans $5.6m to Banka per Biznes to Boost Competitiveness of SMEs in Kosovo

The European Bank for Reconstruction and Development (EBRD), a multilateral development finance institution, recently loaned EUR 5 million (USD 5.6 million) to Banka per Biznes, a commercial bank based in the city of Pristina, Kosovo. The loan is a joint initiative of EBRD and the EU under the Western Balkans SME Competitiveness Support Programme, which supports small and medium-sized enterprises (SMEs) in accessing markets in the Western Balkans – and Europe in general – by encouraging investment in “environmental protection, health and safety, and product quality.” To meet the first of these targets, Banka per Biznes has agreed that a majority of the loans will be for investments that save energy. As part of the competitiveness programme, the EU provides the participating SMEs with technical assistance plus grants of up to 15 percent of their loan amounts upon successful completion of their projects.

Banka per Biznes is a licensed commercial bank established in Kosovo in 2001.The bank’s strategic goal is to support the development of Kosovo’s economy, by offering banking products and services to individuals, SMEs and corporations. As of December 2020, Banka per Biznes held assets totalling EUR 334 million (USD 376 million), EUR 288 million (USD 324 million) in customer deposits and a gross loan portfolio of EUR 199 million (USD 224 million). It generated a return on assets of 1.35 percent during the fiscal year 2020 and has 26 branches across Kosovo. The bank is owned domestically except for a 10-percent stake held by EBRD.

Founded in 1991 and based in the UK, EBRD seeks to support a “transition to open, market economies, whilst fostering sustainable and inclusive growth” in 38 countries in Central Asia, Eastern Europe and North Africa. It does this by providing business advice, supporting trade finance, and investing debt and equity in funders of microenterprise and SMEs. With a focus on “the promotion of private and entrepreneurial initiative,” the bank disbursed approximately EUR 11 billion (USD 13.3 billion) to 411 projects during 2020. EBRD’s shareholders comprise 69 countries plus the EU.

By Vighnesh Avadhanam, Research Associate

Sources and Additional Resources

EBRD press release
https://www.ebrd.com/news/2021/ebrd-extends-5-million-to-banka-pr-biznes-in-kosovo-.html

Banka per Biznes homepage
https://www.bpbbank.com/

Banka per Biznes Annual Report 2020
https://www.bpbbank.com/wp-content/uploads/2021/04/Annual-Report-2020.pdf

MICROCAPITAL BRIEF: EBRD to Lend $5.7m to Banka per Biznes (BPB) for On-Lending to SMEs in Kosovo
https://www.microcapital.org/microcapital-brief-ebrd-to-lend-5-7m-to-banka-per-biznes-bpb-for-on-lending-to-smes-in-kosovo/

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