Proparco and 3Bank launch first partnership to promote financial inclusion of small farmers and VSEs in Serbia

Founded in 2002 by the Chicago based NGO Opportunity International and majority owned by three EU based sustainable banks Triodos, GLS and Umweltbank since 2020, 3Bank is Serbia's only microfinance bank. The bank is strongly committed to responsible financial inclusion, thanks in particular to its network of 38 branches (covering 75% of the country), as well as an A social rating from MicroFinanza Rating (2018).

Proparco's financing will contribute to the growth of 3Bank's loan portfolio, with concrete impacts on employment and the financial inclusion of Serbian entrepreneurs. Indeed, it is estimated that the project will support 737 indirect jobs, the granting of 3,402 additional microcredits and the coaching of nearly 200 SMEs.

In addition to these tangible impacts, Proparco's financing also helps to meet the region's food security challenges, by supporting a player that has historically specialized in agricultural financing (38% of its portfolio), and which has been affected by the Russian-Ukrainian conflict, particularly in terms of input and fertilizer supplies. Finally, given the strong presence of female managers and employees within the bank, the project qualifies for the 2X Challenge, an initiative promoting women's economic empowerment.

According to Stéphane Froissardey, Regional Director - Turkey, Middle East, Caucasus, Balkans and Central Asia, “Proparco is proud to initiate a partnership with such a committed institution as 3Bank. We share a strong commitment to improving financial inclusion and thereby reducing inequalities in Serbia, whether they are gender-based, socio-economic, or territorial. This partnership is also an opportunity to support farmers, who are a cornerstone of the Serbian economy, by facilitating their access to the financial services necessary to develop and modernize their activities. We are confident that this commitment will contribute to strengthening the resilience and sustainability of rural areas.”

Vladimir Vukotić, CEO 3Bank said: “This milestone is very important to us as it marks a beginning of a partnership with such an esteemed organization as Proparco, who we see as long-term partner in the future due to common goals and values.  Today, every second farmer and every third entrepreneur who use loans in Serbia are financed by 3Bank, and this loan and guarantee schemes will enable us to support them even stronger, providing access to long-term lending to clients who are not in a position to offer the collateral required for long term financing by traditional banks. This way, we are not only transforming the lives of our clients, but also creating positive impact on society as a whole”.

The project will contribute to MDGs 1 (“poverty eradication”), 2 (“fight against hunger”) and 8 (“decent work and economic growth”).