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Improving the financial inclusion of smallholder farmers in Serbia
Project
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Signature date
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Location
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Serbia
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Financing tool
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Financing amount (Euro)
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7 500 000,00
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Customer
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3 Banka a.d. Novi Sad
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Type of customer
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Microfinance
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Country of headquarters
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Serbia
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Project number
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PRS1003
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Environmental and social ranking
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IF-C
This information is given at the time of signature, without prejudice to any developments in the operation/project.
Proparco has allocated €7.5 million of financing to 3Bank to support its growth and its activities for Serbian smallholder farmers and microenterprises.
Client presentation
Founded by the NGO Opportunity International, 3Bank is Serbia’s first financial institution with an activity dedicated to financing Serbian smallholder farmers and microenterprises. The bank is the leader in financing these segments, as 51% of smallholder farmers and 29% of microenterprises that have taken out a loan from Serbian banks are among its clients. At 30 September 2022, the institution served 72,760 active borrowers (41% of whom are women) with a loan portfolio of €167 million. It operates through a network of 38 branches covering 75% of the country. 3Bank obtained an “A” Social Rating from MicroFinanza Rating in 2018 and was certified Smart Campaign in 2015.
Project description
The project involves the allocation of a €7.5 million senior loan to the Serbian bank 3Bank to support the growth of its loan portfolio.
Through its social mission and the range of financial and non-financial services offered to segments underserved by the local financial system, it is aligned with Pillar 3 (“Contributing to reducing inequalities”) of Proparco’s Strategy 2023-2027.
Project impact
The expected impacts of this financing are as follows:
Employment
- 737 jobs supported over the next 5 years through micro-credits to finance the income-generating activities of MSMEs (indirect jobs) and 32 direct jobs in the MFI
Start-ups & SMEs
- More than 193 MSMEs supported
Gender
- Contribution to gender equality through a commitment to finance companies qualifying for the 2X Challenge (30% of Proparco’s financing). The financing qualifies for the 2X Challenge on the basis of the criteria #2 “Leadership”, as 40% of the management team are women, and #3 “Employment”, as 59% of employees are women
Access
- Support for providing new or improved access to micro-credits over the next 5 years for 3,402 Serbian smallholder farmers and micro-entrepreneurs
The project will thereby contribute to the achievement of SDG 1 (“No poverty”), SDG 5 (“Gender equality”), SDG (“Decent work and economic growth”) and SDG 10 (“Reduced inequalities”).