FZ funding loan to Alter Modus for Micro II

completed

The aim of the project is to improve and sustainably secure access to micro and small loans for micro-entrepreneurs and new business founders in Montenegro. To this end, the KfW Development Bank has granted an FC promotional loan of EUR 5 million to the microfinance institution Alter Modus. Many micro-entrepreneurs do not receive financing from commercial banks in Montenegro because they belong to the informal sector, lack collateral or lack financial data. They do not belong to the typical customer group of private banks and only have access to financing options through the microfinance sector. The customer group of micro-entrepreneurs is explicitly provided with loans by Alter Modus. To this day, the microfinance institution adheres to the mission of its founding years and supports micro and small companies in order to enable them to become economically independent and actively participate in economic activity. Like all microfinance institutions in Montenegro, Alter Modus is dependent on short- and long-term refinancing options from microfinance funds and banks, as it is excluded from the deposit business. With this financing, the KfW Development Bank is helping to ensure that a large proportion of small businesses and sole proprietors are better integrated into the financial market and can be adequately provided with financial services. By granting the loan, we are building on the long-standing and trusting cooperation between Alter Modus and the KfW Development Bank. Alter Modus is a long-standing cooperation partner and already received an FZ development loan in 2008.