ProCredit Bank

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• ProCredit Bank
• Christoph Freytag General Director
• September 2003

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ProCredit Banks shareholders

• Commerzbank AG, Frankfurt
• Internationale Micro Investitionen AG (IMI),
  Frankfurt
• Kreditanstalt fuer Wiederaufbau (KfW), Frankfurt
• Nederlandse Financierings Maatschappij voor
  Ontwikkelingslanden N.V. (FMO), Hague
• International Finance Corporation (IFC),
  Washington D.C.
• European Bank for Reconstruction and Development
  (EBRD), London

Belgrade Branch
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ProCredit Banks mission

• ProCredit Bank is a development-oriented
  full-service bank. We offer excellent customer
  service and a wide range of banking products. In
  our credit operations, we focus on lending to
  micro, small and medium-sized enterprises, as we
  are convinced that these businesses create the
  largest number of jobs and make a vital
  contribution to the economies in which they
  operate. Our bank explicitly avoids all
  speculative lines of business and issues large
  loans only in exceptional cases, thus minimizing
  the risk associated with such activities.
• Our shareholders most of whom are major,
  well-established international institutions
  expect a sustainable return on investment, but
  are not primarily interested in short-term profit
  maximization. We invest extensively in the
  training of our staff in order to create an
  enjoyable and efficient working atmosphere, and
  to provide the friendliest and most competent
  service possible for our customers.

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ProCredit Bank Branch Network
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Products and Services

• Current, Time Deposits and Savings Accounts for
  private and corporate clients
• Loans
• Micro Express Loans (up to EUR 10,000)
• Small Loans (up to EUR 50,000)
• Medium Loans (up to EUR 500,000)
• Agro Loans
• Payment Services
• National Money Transfers
• International Money Transfers
• Payment Cards
• Dina Card
• Diners Credit Club Card
• FOREX Services

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Loan Application

• ProCredit Bank has over 100 fully trained Loan
  Officers (LO), who provide Clients with detailed
  information on loan applications
• The Client is asked to provide the Bank with
  documentation necessary for the loan processing
• Analysis, based on the actual situation of the
  business itself and on the loan repayment
  capacity of the Client, is done
• The LO visits the Client and if all conditions
  are fulfilled the Bank will disburse the loan
  within 3-20 days

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Documentation

• Micro Loans
• Passport copy,
• Registration of the business
• Small and Medium sized loans
• Financial reports,
• Registration documents,
• Legal documents
• Documentation on proposed collateral

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Who is eligible to apply?

• All private companies and entrepreneurs that have
  been doing business successfully for at least 3
  (micro) resp. 6 (SME) months and are prepared to
  disclose information.
• Exceptions
• Environmentally harmful production
• Producers of military equipment/weapons
• Producers of hard liqueurs and tobacco
• Gambling, Casinos, etc.

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Purpose of the loan

• The loan can be used to support the development
  of the business
• Working capital (purchase of goods/materials)
• Purchase/investment into fixed assets
  (buildings/machinery/equipment/vehicles)
• For micro loans the bank does not control the use
  of funds prior to disbursement

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Loans

• Type Euros IR Disbursement fee
• Micro 250-10k 1.6 2.0 2
• Small 10k-50k 1.2 - 1.75 1.5 - 2
• Medium 50k-500k 0.8 - 1.5 0.9 - 2
• Monthly interest rate calculated on the
  outstanding loan amount

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Collateral

• Micro loans
• Guarantors and/or movable assets (cars,
  equipment, private property)
• Preferably no mortgages
• Small and Medium Loans
• Inventory, equipment, machines, vehicles
• Goods
• Mortgages for loans gt 1 year

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Maturities

• Micro loans
• Up to 2 years
• Small and Medium Loans
• For working capital purposes up to 2 years
• For investment purposes up to 5 years

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Loan Results

• Outstanding loan portfolio Number of
  loans 20.588 Volume 60.726.000 Euro

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Business Loans Outstanding
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Breakdown by Loan Amount Outstanding (in )
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The SME sector in (not only) Serbia

• ProCredit Bank believes that there is a
  substantial market potential and stable growth of
  the micro and SME sector in Serbia
• Managers who are running businesses know what
  they are doing
• The aim of the Bank is not only to disburse
  loans, but to build a long term relationship with
  its clients based on the commitment to become a
  Bank that will offer a full banking solution to
  enterprises and individuals tailored to their
  specific needs

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ProCredit Bank Network

• Banks Network 9 banks in Southeast Europe
• Shareholders IMI, IFC, EBRD, KfW Group,
  and in some countries also
  Commerzbank, FMO.
• Client Base gt300 000
• Total Assets EUR 720 million
• Total Loan Portfolio EUR 350 million
• Total Capital EUR 80 million
• Offering services to 113 million population

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Loan Results of the ProCredit Bank Group(65000
outstanding loans with over EUR 300 million)
update
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