EBRD approved loan of 70m EUR to "Idea" in Serbia to increase capital and expand operations

European Bank for Reconstruction and Development (EBRD) has announced today (October 20, 2008) that it approved the loan of 70m EUR to market chain "Idea" in Serbia to increase capital and expand operations.

The loan approved to "Idea", which is owned by Croatian "Agrokor", represents the first EBRD's investment in trade sector in Serbia.

EBRD will provide 35m EUR for that loan from its own funds, while another 35m EUR will be provided through the joint loan with Greek Alpha Bank.

Retail sector in Serbia is insufficiently developed and divided since there are only 25 square meters of retail space per 1,000 citizens in Serbia, while European Union disposes of 270 square meters of retail space per 1,000 habitants.

The CEO of EBRD in Serbia, Hildegard Gacek, said that the loan approved to "Idea" was the opportunity for that bank to back the regional market chain that intended to introduce high standards of offer and services in Serbia.

By this project, EBRD encourages further regional economic integrations and improvement of trade and business relations.