The International Finance Corporation (IFC) is set to invest up to €65 million ($69 million) in Erste Bank a.d. Novi Sad to close funding gaps for micro, small, and medium enterprises (MSMEs) and green initiatives in Serbia. This investment introduces the country’s first MREL-eligible senior preferred five-year loan, designed to enhance market resilience and foster economic sustainability.
MREL, or Minimum Requirement for own funds and Eligible Liabilities, is an EU regulatory standard that mandates banks maintain sufficient loss-absorbing capacity to avoid taxpayer-funded bailouts and maintain stability.
“This partnership with IFC marks a significant milestone for Erste Bank and Serbia’s financial sector. By combining our resources to support green and sustainable growth, we are ensuring that micro and small enterprises—key drivers of our economy—gain the financial support they need to thrive,” said Jasna Terzić, CEO of Erste Bank a.d. Novi Sad.
IFC’s investment will also allocate at least 30 percent of its proceeds to support climate change mitigation projects. “Through this pioneering MREL financing, IFC is establishing a robust market benchmark, encouraging other systemic banks to follow with similar financial instruments,” said Nicolas Marquier, IFC Regional Manager for the Western Balkans.
