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Proparco strengthens partnership with 3Bank to boost SMEs and agriculture in Serbia

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With a €24 million ARIZ guarantee, Proparco is enhancing 3Bank’s capacity to extend up to €48 million in new financing to small businesses and farmers, with a strong focus on the country’s most underserved regions.

After an initial €7.5 million loan in 2024, Proparco is deepening its partnership with 3Bank, a leading Serbian institution specializing in financing underbanked farmers, MSMEs, and green initiatives. 3Bank’s impact is evident, with 48% of all farmers and 28% of entrepreneurs using loans in Serbia as its clients. This new operation reaffirms Proparco’s long-term commitment to 3Bank, whose distinctive focus on underbanked segments makes it a key driver of financial inclusion in Serbia.

An ARIZ guarantee to scale up impact

Proparco has granted 3Bank a €24 million ARIZ portfolio guarantee covering 50% of final losses. This risk-sharing mechanism will unlock up to €48 million in new loans, primarily benefiting farmers and MSMEs operating in the agricultural sector. It will also support businesses in trade, services, and processing—sectors that are vital to local economic vitality.
To help reduce regional disparities, at least 50% of the loans backed by the guarantee will be allocated to beneficiaries operating in regions where poverty rates exceed the national average.
 

Tackling Serbia’s economic and social challenges

Micro and small enterprises account for 99% of Serbian businesses and generate more than 64% of national employment. Yet access to finance remains a major constraint, particularly in rural areas. Stark disparities between urban and rural poverty levels further widen these gaps.
In this context, 3Bank plays a critical role. With a network covering nearly 85% of the country, it has supported smallholder farmers and micro-entrepreneurs in rural communities for more than two decades, providing tailored financial solutions where they are needed most.
 

A shared commitment to reducing inequalities

3Bank’s mission closely aligns with Proparco’s strategy to reduce inequalities. The bank focuses on financially excluded clients, offering products adapted to their specific needs and prioritizing underserved rural farmers and microenterprises. Today, around 90% of 3Bank’s portfolio is concentrated in regions eligible under the ARIZ guarantee—testament to its longstanding geographic focus and strong social impact.

This partnership with 3Bank reflects our strong commitment to supporting institutions that actively foster financial inclusion and help address regional disparities. Through the ARIZ guarantee mechanism, we are enhancing access to finance for MSMEs and farmers—key drivers of job creation, income generation, and sustainable local economic development

Steven Gardon

  • Proparco’s Regional Director for Eurasia

We are grateful to Proparco for recognizing our commitment to ensuring that all our activities create a positive social, economic, and environmental impact, especially for clients with limited access to financing. When a small farmer invests in new equipment or a micro-entrepreneur expands a business, the impact is often immediate and more visible than in traditional banking. More than 45% of new loans go to first-time borrowers, demonstrating that we are reaching those most in need of support. This guarantee facility will allow us to offer accessible long-term investment loans to micro and small-scale farmers and entrepreneurs, supporting economic resilience, sustainable growth, and the development of local communities.

Vladimir Vukotić

  • CEO at 3Bank

This transaction is fully aligned with Proparco’s strategy to foster sustainable and inclusive economic development.
Through this initiative, 3Bank and Proparco are contributing directly to several Sustainable Development Goals (SDGs), including:
-    SDG 1 (No Poverty), by targeting rural areas and low-income populations;
-    SDG 2 (Zero Hunger), through financing agricultural production and food systems;
-    SDG 8 (Decent Work and Economic Growth), by supporting microenterprises, early-stage entrepreneurs, and job creation;
-    SDG 12 (Responsible Consumption and Production).

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