Wednesday, 15 October 2025
The European Bank for Reconstruction and Development (EBRD) has signed a new €5 million financing package with Erste Bank AD Podgorica (Erste Bank Montenegro) to boost Montenegro’s green transition and promote women’s entrepreneurship. The agreement was finalized in Tivat on 14 October, during the Smart Growth, Green Future investment conference, held in cooperation with the European Union Delegation to Montenegro, the Government of Montenegro, and the Montenegrin Investment Agency.
The funds will be divided into two components: €3 million will be on-lent to households, housing associations, and construction firms for projects that improve energy efficiency, while €2 million will finance women-led businesses across the country.
Both credit lines form part of the EBRD’s long-term commitment to sustainability and inclusion. The initiative will be supported by EU-funded grants and guarantees as well as technical assistance provided by the European Union and the Government of Japan.
The €3 million component is part of the Green Economy Financing Facility (GEFF) for the Western Balkans, which helps homeowners and developers invest in energy-saving measures such as insulation, efficient heating, and renewable-energy technologies. Borrowers who complete eligible projects will receive grant incentives of up to 20 per cent of their investment cost, funded by the EU.
The €2 million credit line dedicated to women-led micro, small and medium-sized enterprises is part of the EBRD Women in Business programme. It includes a first-loss guarantee funded through the European Fund for Sustainable Development Plus (EFSD+), which reduces lending risk and encourages banks to extend credit to women entrepreneurs.
“Through this partnership, we aim to combine two of our key priorities — sustainability and inclusion,” said Charlotte Ruhe, EBRD Managing Director for Central and South-Eastern Europe. “By providing access to financing under the GEFF and Women in Business programmes, supported by EU-funded incentives and guarantees, we are helping households and women entrepreneurs play a direct role in Montenegro’s green and inclusive growth.”
Aleksa Lukić, Chairman of the Management Board at Erste Bank Montenegro, said the agreement reflects the bank’s strategy to promote responsible lending and empower individuals to invest in a sustainable future. “With this facility, citizens can join the green transition while benefiting from tangible financial advantages,” he said. “We are also proud to participate in the Women in Business initiative, which supports equality and economic opportunity for women across Montenegro.”
Johann Sattler, Ambassador of the European Union to Montenegro, added that the EU is proud to back this partnership. “Building a more inclusive economy is an essential part of Montenegro’s EU integration process. I hope this example inspires other banks to design products that empower women and promote sustainability,” he said.
The EBRD remains one of Montenegro’s leading institutional investors, with more than €1 billion invested across 100 projects, supporting infrastructure upgrades, private-sector competitiveness, and the country’s green transition.
Photo source: EBRD
