EBRD lends €13 million to ProCredit Bank in Kosovo

• EBRD lending €13 million to ProCredit Bank Kosovo under two different credit lines
• Funding to boost SME on-lending and help green Kosovo’s residential sector
• Projects supported by the EU, Denmark, Japan, Luxembourg, Norway, Switzerland and the United States of America

The European Bank for Reconstruction and Development (EBRD) is supporting several sectors in Kosovo through a partnership with ProCredit Bank.

The Bank is providing funding to ProCredit Bank Kosovo for two projects, with financing totalling €13 million:

• A senior loan of up to €8 million under the EBRD’s SME Reboot Programme to boost small and medium-sized enterprises (SMEs), with a particular focus on investments in better‑performing green technologies. As a result, Kosovan SMEs will become more competitive in the domestic market and abroad, as these investments will help to make them compliant with European Union (EU) and other international standards. Denmark and Switzerland are supporting the programme with technical cooperation through the EBRD’s Small Business Impact Fund (SBIF). Local SMEs will receive cash back of up to 15 per cent of the loan amount to make their investments more affordable. These grant incentives for the programme will be supported by Norway, Luxembourg, Switzerland and the United States through the SBIF, as well as Denmark.
• A senior loan of up to €5 million under the Green Economy Financing Facility (GEFF) to support energy efficiency and renewable-energy investments by individual residents, housing collectives, construction companies and the public sector. This loan will support investments in high-performance green technologies, sustainable materials and innovative solutions for privately owned residential dwellings and buildings. Homeowners will benefit from incentive payments of up to 20 per cent of the loan value upon successful installation of the green technologies. Together with access to finance, they will also receive advice on choosing and acquiring energy-saving equipment such as insulation, windows, heat pumps and solar panels. The loan is supported by the EU through the Western Balkans Investment Framework, as well as receiving support from Japan and Denmark.

A longstanding partner of the EBRD, ProCredit Bank Kosovo is the largest SME bank in the country, with a proven track record in successfully implementing SME credit lines provided by the Bank.

Sergiy Maslichenko, the EBRD’s Head of Kosovo, said: “We are pleased to be strengthening our partnership with ProCredit Bank Kosovo through this significant investment, which underlines our commitment to supporting Kosovo’s green transition and economic development. These projects highlight the Bank’s dedication to advancing key sectors across the country. Our SME credit line will create new opportunities for a crucial segment of the economy, while our initiative to green the residential sector will boost the transition to a green economy, reduce greenhouse gas emissions and lower energy costs.”

Visar Paçarada, CEO of ProCredit Bank Kosovo, added: “ProCredit Bank Kosovo is committed to leading by example in fostering economic progress and sustainability. Our partnership with the EBRD highlights the power of collaboration in driving meaningful impact. By supporting SMEs and promoting sustainable practices in the residential sector, we empower businesses to grow responsibly while enabling individuals to invest in energy-efficient technologies, contributing directly to sustainable economic growth and environmental resilience in Kosovo.”

The EBRD is a leading institutional investor in Kosovo, with total investment of more than €680 million through 112 projects to date.