The International Finance Corporation (IFC) is providing financing of up to €35mn to Eurobank to strengthen the bank’s mortgage lending and increase trade finance for companies in Serbia.

The financing is divided into two loans, a €15mn loan for mortgage lending purposes and a €20mn facility in support of working capital financing for Serbian companies engaged in imports and exports.

“We are very pleased to be signing this agreement today and expanding our already successful co-operation with one of the leading international financial institutions, such as IFC. By doing so, we also confirm our strategic focus on supporting the retail sector and Serbian export-oriented companies,” says Filippos Karamanolis, president of the executive board, Eurobank Belgrad. “Thanks to this agreement, we will have an opportunity to offer our clients mortgage loans under highly favourable terms, tenor and interest rate.”

“One of IFC’s priorities is providing support to the financial sector through capital investments and long-term financing to major banks that promote systemic stability,” comments Thomas Lubeck, IFC’s regional manager for the Western Balkans. “It is essential to keep the flow of credit to individuals and companies in Serbia and encourage further development and economic stability of the country.”

IFC has already worked with Eurobank, first in 2010 with a €38mn loan to support small and medium enterprises in Serbia, and again between 2011 and 2013 providing a US$60mn trade facility.