IFC and Erste Bank Partner to Boost MSME Growth and Catalyze Green Transition in Serbia

In a strategic move to bridge funding gaps for micro, small, and medium enterprises (MSMEs) and green initiatives in Serbia, IFC is set to invest up to EUR 65 million in Erste Bank a.d. Novi Sad. The funding marks the first MREL-eligible senior preferred five-year loan instrument in Serbia, underpinning a broader effort to bolster market resilience and economic sustainability.

MREL, or Minimum Requirement for own funds and Eligible Liabilities, is an EU regulatory requirement designed to ensure banks have sufficient loss-absorbing capacity to maintain operations and avoid taxpayer-funded bailouts. Meeting Serbia’s newly set MREL targets is crucial for banks to build investor confidence and boost lending.