EBRD to Back CKB with $29M Guarantee to Boost MSME Lending in Montenegro

The European Bank for Reconstruction and Development (EBRD) will provide a $29 million partial credit guarantee to Crnogorska komercijalna banka (CKB) aimed at expanding lending to Montenegro’s micro, small and medium-sized enterprises (MSMEs). The move is designed to reduce credit risk for the bank and unlock new financing for businesses that often struggle to obtain affordable, long-term loans.

Under the arrangement, the guarantee will cover a portion of potential losses on eligible loan portfolios, enabling CKB to scale up its MSME lending while maintaining prudent risk management. By sharing credit exposure, the facility is expected to encourage the bank to extend more working capital, investment loans and potentially green-financing products to enterprises across multiple sectors, including tourism, manufacturing and services.

The guarantee fits within the EBRD’s broader mandate in the Western Balkans to strengthen financial intermediation, support private sector growth and foster economic recovery. For Montenegro—where small businesses play a central role in employment and local value chains—the measure should help bridge the persistent financing gap that constrains expansion and modernization.

Analysts say credit guarantees like this can be an efficient tool to mobilize private capital: by mitigating downside risk for lenders, they lower barriers to lending and can help secure better terms for borrowers. The EBRD’s support is likely to be accompanied by technical cooperation or advisory work to ensure that CKB’s lending criteria, product design and environmental and social safeguards align with international best practices.

While the guarantee does not directly inject cash into the economy, its catalytic effect can be significant if it leads to a sustained increase in bank-supported investment. For MSMEs, improved access to finance can mean opportunities to upgrade equipment, expand operations, hire staff and adopt greener technologies.

The partnership underscores both institutions’ focus on resilient private-sector development and job creation. Implementation details—such as the guarantee coverage ratio, eligible loan types and timeline—will be finalized as the banks move to sign the agreement and roll out the program to businesses across Montenegro.