Participating banks

MIDF carefully selects its participating banks on the basis of strict eligibility criteria, including sound financial situation, integrity and anti-money laundering procedures, corporate governance, commitment to municipal projects, etc. Supported by MIDF’s expertise, technical assistance and credit instruments, the participating banks are the driver of MIDF investments on the ground. They provide loans and resources for the successful realisation of targeted infrastructure investments. Through effective cooperation with the participating banks, MIDF mobilises private sector capital to enhance its mission impact and close the funding gap in the region. Through training and the implementation of best practices, MIDF additionally assists the participating banks in strengthening their municipal lending strategy and its execution.

MIDF offers various credit instruments in support of its participating banks including:

  • Credit lines – MIDF provides additional liquidity to participating banks at market terms. In turn, participating banks can expand their own lending to beneficiaries.
  • Funded risk participation – MIDF provides an agreed portion of the funding to the participating bank to co-finance an eligible investment and bears a pro rata share of the repayment risk.
  • Unfunded risk participation – MIDF guarantees an agreed share of the funding provided by the participating bank and shares potential losses pro rata in case of a default by the beneficiary.

In all cases, it is the participating banks lending money directly to beneficiaries so they can invest in projects. The loans are priced competitively by the participating banks, according to their own lending policies and their own credit risk assessment. The loans range between €100,000 and €5 million, with a maximum maturity of 10 years.

MIDF has so far signed agreements with the following banks:

  • Albania 
  • Bosnia and Hercegovina - NLB Razvojna Banka
  • Kosovo – TEB, NLB Prishtina
  • FYR Macedonia – Komercijalna Banka
  • Montenegro – Erste Bank
  • Serbia – Unicredit Bank

Negotiations are in progress with other banks to join soon.  (Last updated: 2015-08-25).