EBRD extends €5 million to Erste Bank Montenegro for green transition and women’s entrepreneurship

This article is brought to you in association with EBRD.

• €3 million loan to be on-lent to households, housing associations and construction firms for investments in energy-saving measures
• €2 million loan will support investments by women-led businesses
• Financial package will be supported by donor-funded incentive grants, guarantees and technical assistance

The European Bank for Reconstruction and Development (EBRD) is deepening its commitment to Montenegro’s green transition and inclusive growth with a new €5 million financial package for Erste Bank AD Podgorica (Erste Bank Montenegro) to be on-lent to its clients.

The funds will go towards two high-impact areas: €3 million to help households, housing associations and construction companies to invest in energy-saving upgrades, and €2 million to empower women-led businesses with fresh capital for growth. In addition to loans, investments will be supported by European Union-funded grant incentives and guarantees.

This initiative builds on the EBRD’s longstanding support in Montenegro and reflects its strategic focus on sustainability, inclusion and boosting competitiveness across the regions in which it operates.

The signing took place in Tivat on 14 October 2025, on the margins of the Smart Growth, Green Future investment conference organised by the by the European Union Delegation to Montenegro, Government of Montenegro and Montenegrin Investment Agency.

Charlotte Ruhe, Managing Director for Central and South-Eastern Europe, said: “We are pleased to mark the beginning of our cooperation with Erste Bank Montenegro. This inaugural partnership is an exciting step forward, as we join forces to support women-led micro, small and medium-sized enterprises and the residential sector in Montenegro through Women in Business and Green Economy Financing Facility (GEFF) programmes. We believe that these credit lines, enhanced by EU-funded incentive grants and guarantees, will inspire many women entrepreneurs to invest in scaling up their businesses, and will motivate households to adopt energy-saving measures, helping them lower utility costs while contributing to a cleaner and more sustainable future for the country.”

Aleksa Lukić, Chairman of the Management Board of Erste Bank Montenegro, commented: “As a bank recognised for its prominent role in financing green projects and renewable energy, we are proud to extend our support for sustainability to households as well. The GEFF credit line is our way of enabling citizens to be part of the change and the green transition – with support and tangible financial benefits. Sustainability is our shared responsibility. We are also pleased to join the Women in Business initiative, further reaffirming Erste Bank’s commitment to empowering women in business. By offering favourable financial products and educational programmes for women entrepreneurs, we aim to foster sustainable and inclusive economic development.”

Johann Sattler, Ambassador of the European Union to Montenegro, said: “I am proud that the European Union is supporting women’s entrepreneurship through our grants and guarantees. Building a more inclusive society and economy is a core part of Montenegro’s EU accession process, and initiatives like this directly contribute to that goal. I hope this operation will set an example for other local banks and encourage more women to start their own businesses. I also welcome the EBRD’s long-term commitment to the GEFF programme, as well as their decision to use some of the EU funds and guarantees for energy-saving upgrades that will benefit households across Montenegro.”

The €3 million loan extended for energy efficiency was secured by the EBRD GEFF* programme for the Western Balkans, which aims to support the region in improving the energy efficiency of its residential sector.

The loan includes grant incentives funded by the EU of up to 20 per cent of the loan amount, which borrowers will be able to access on successful completion of their investments.

In addition, borrowers and Erste Bank Montenegro will benefit from expert technical assistance, funded by Japan and the EU, to ensure effective implementation.

The second loan, which will be extended to women entrepreneurs, is part of the Women in Business programme and includes guarantees for first-loss risk cover, funded by the EU through The European Fund for Sustainable Development Plus (EFSD+).

The EBRD is a leading institutional investor in Montenegro, with more than €1 billion invested through 101 projects, supporting the country’s sustainable development, infrastructure, private-sector growth and regional integration.

*The GEFF programme is co-funded by the European Union, Austria, Japan and Denmark, and by Austria and Switzerland through the High-Impact Partnership on Climate Action (HIPCA).

The EBRD’s HIPCA is supported by Austria, Canada, Finland, Germany, the Netherlands, South Korea, Spain, Switzerland, the TaiwanICDF, the United Kingdom and the United States of America.