Bank aus Verantwortung

Financial Co-operation with Serbia

Belgrade, December 2015

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Outline

1 KfW Banking Group

2 KfW Development Bank

3 Financial Co-operation (FC) with Serbia

4 Priority Areas of FC in Serbia

5 FC Program Overview and Project Examples

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KfW Banking GroupKey Facts (end of 2014)

› Promotional bank

› Founded in 1948

› Shareholders: 80% Federal Republic of

Germany, 20% federal states

› Balance sheet total: EUR 490 billion

› Financing volume: EUR 75 billion

› Employees: 5.500

› Rating: AAA/Aaa/AAA

KfW Development Bank: Part of KfW Group

We promote developmentDeveloping &

emerging countries

International financing

We promote Germany

Private clientsSMEs Municipalities

Domestic promotion

We support internationalisation

Export & project finance

Support for the environment and climate protection

Financing volume (FV): 47,6 billion (2014, EUR) FV: 16,6 billion FV: 7,4 billion and 1,5 billion

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Financial Co-operation with Serbia – The Role of KfW

› KfW Office in Belgrade established 2001 (currently 7 employees)

› Financing of infrastructure investments as well as consulting measures, i.e.

implementation assistance and institutional support/training measures

› International public tendering of goods and services

› Financial commitments through KfW reached about EUR 1.7 billion (2015)

› Country Partners: Ministries, Municipalities, Public Utilities, Financial Institutions

› 170 Projects have been committed (current portfolio some 100 Projects)

› Main segments of FC and related commitments:

• Urban Infrastructure: EUR 250 million

• Energy: EUR 850 million

• Financial Sector: EUR 500 million

› Promotion of entrepreneurial initiatives / financing via DEG (EUR 100 million)

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A proven and successful promotional engagement

KfW

Partner Banks

ClientsFunds from capital market and/or

donations

FC Program OverviewFC Segment: Financial Systems Development

• Municipal Infrastructure Facility

• Rural Area Development Facility

• Energy Efficiency and Renewable Energy Facility

• Regional Facilities

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• Programme started in 2008› EUR 156 million funding volume

• Partner banks/Institutions› Banca Intesa Beograd› Komercijalna Banka› Unicredit Banka Srbija› Standing Conference of Towns and Municipalities

Project ExampleMunicipal Infrastructure Facility

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• Approach:› Final Beneficiary: small and medium sized municipalities and

Public Utility Companies› Financing investments (public infrastructure) and equipment

purchase (Public Utility Companies)› Consultancy services assist municipalities and support banks› Investments in EE and Environmental protection

• Impact:› Financed more then 400 projects › Financed more than 100 final beneficiaries

Project ExampleMunicipal Infrastructure Facility (continued)

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• Approach:› Final Beneficiary: small and medium sized municipalities and

Public Utility Companies› Financing investments Energy efficiency and Environmental

protection projects› Consultancy services assist municipalities and support banks› Grant component: 15% for EE projects, 20% for

environmental projects

Project ExampleMunicipal Infrastructure Facility MEGLIP Program

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• Partner banks/Institutions› Banca Intesa Beograd› Komercijalna Banka› Standing Conference of Towns and Municipalities

• Programme started in 2012› EUR 121.5 million funding volume

• Partner banks/institutions› Komercijalna Banka› Procredit Banka Srbija› Societe Generale Bank Srbija› Banca Intesa Beograd› Ministry of Agriculture end Environmental protection

Project ExampleRural Area Facility

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• Approach: › Developing professional agri-financing in commercial banks› Widening of the programme for rural areas to support banks toi. understand structural changesii. answer the needs with adequate financing solutions in

suitable sectors like construction, services, deliveries and logistics

in the light of a foreseeable structural changes• Impact

› New products and financial solutions have been introduced by partner financial institutions in Serbian market

› Clients are able to professionalize their businesses and to become more competitive in the international trade

› Developing a product combining loans and insurance cover, which shall optimize risk management in farms

Project ExampleRural Area Facility (continued)

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• Programme started in 2008 › EUR 264.5 million funding

• Partner banks/institutions› Procredit Banka Srbija› Unicredit Banka Srbija› Erste Bank Srbija› Banca Intesa Beograd› Čačanska banka› SBER banka› Raiffeisen Bank› Ministry of Mining and Energy

Project ExampleEnergy Efficiency and Renewable Energy Facility

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• Approach: › Financing of economically sustainable and environmentally

friendly energy projects and renewable energy solutions› Final beneficiaries: micro and SME, private households,

municipalities› Technical assistance provided› Investments that save at least 20% of energy are eligible for

the programme • Impact

› Enhances long-term, efficient and environmentally friendly energy utilisation

› Around 12.000 final beneficiaries › CO2 reduction of around 84.000 t/p.a.

Project ExampleEnergy Efficiency and Renewable Energy Facility (continued)

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arne.gooss@kfw.de (Director KfW Office Belgrade)

darko.ivkovic@kfw.de (Project Coordinator, KfW Office Belgrade)

Contacts