Early Warning System

Countries

Montenegro

Geographic location where the impacts of the investment may be experienced.

Financial Institutions

European Bank for Reconstruction and Development (EBRD)

International, regional and national development finance institutions. Many of these banks have a public interest mission, such as poverty reduction.

Project Status

Approved

Stage of the project cycle. Stages vary by development bank and can include: pending, approval, implementation, and closed or completed.

Bank Risk Rating

Environmental and social categorization assessed by the development bank as a measure of the planned project’s environmental and social impacts. A higher risk rating may require more due diligence to limit or avoid harm to people and the environment. For example, "A" or "B" are risk categories where "A" represents the highest amount of risk. Results will include projects that specifically recorded a rating, all other projects are marked ‘U’ for "Undisclosed."

Voting Date

Jun 25, 2024

Date when project documentation and funding is reviewed by the Board for consideration and approval. Some development banks will state a "board date" or "decision date." When funding approval is obtained, the legal documents are accepted and signed, the implementation phase begins.

Borrower

MIKROKREDITNA FINANSIJSKA INSTITUCIJA ALTER MODUS DOO

A public entity (government or state-owned) provided with funds or financial support to manage and/or implement a project.

Sectors

Finance

The service or industry focus of the investment. A project can have several sectors.

Investment Type(s)

Loan

The categories of the bank investment: loan, grant, guarantee, technical assistance, advisory services, equity and fund.

Investment Amount (USD)

$ 2.14 million

Value listed on project documents at time of disclosure. If necessary, this amount is converted to USD ($) on the date of disclosure. Please review updated project documents for more information.
Currency conversion note:
Bank reported 2
Converted using 2024-06-25 exchange rate.

Project Cost (USD)

$ 2.14 million

Bank Documents

Translation: FIF - WB Youth in Business - Alter Modus II (Montenegrin)

Primary Source

Original disclosure @ EBRD website

Updated in EWS Jul 17, 2024

Disclosed by Bank Jun 25, 2024

Contribute Information
Can you contribute information about this project?
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Project Description

If provided by the financial institution, the Early Warning System Team writes a short summary describing the purported development objective of the project and project components. Review the complete project documentation for a detailed description.

According to the Bank’s website, the project consists of a senior unsecured loan of up to EUR2.0 million to be provided in two equal tranches (EUR 1.0 million each) under EBRD Western Balkans Youth in Business Programme ("WB YiBP").

The loan proceeds will be used for on-lending to eligible micro, small and medium-sized enterprises ("MSMEs") whose overall operational management responsibility or majority ownership is held by a person (or persons) under the age of 35 ("Youth MSMEs") in Montenegro in accordance with the Policy Statement.

Early Warning System Project Analysis

For a project with severe or irreversible impacts to local community and natural resources, the Early Warning System Team may conduct a thorough analysis regarding its potential impacts to human and environmental rights.

Categorised FI (ESP 2019).

Investment Description

Here you can find a list of individual development financial institutions that finance the project.

European Bank for Reconstruction and Development (EBRD)

A senior unsecured loan of up to €2.0 million to be provided in two equal tranches (EUR 1.0 million each) under EBRD Western Balkans Youth in Business Programme ("WB YiBP").

Non-TC Funds: EUR 200,000 of non-TC funds will be provided by the EBRD Shareholders Special Fund in the form of First Loss Risk Cover of up to 10% of the Loan, with a cap of 70% for any single sub-loan.

TC Funds: The YiB TC Funds will be used for the payment of certain costs such as (i) a technical cooperation package for partner financial institutions which will include baseline assessment, capacity building, product development, marketing support, and overall project management and (ii) advisory service component for Youth MSMEs offered under EBRD's Advice for Small Business Programme with the aim to strengthen entrepreneurial skills and mindset of eligible sub-borrowers.

Financial Intermediary

A financial intermediary is a bank or financial institution that receives funds from a development bank. A financial intermediary then lends these funds to their clients (private actors) in the form of loans, bonds, guarantees and equity shares. Financial intermediaries include insurance, pension and equity funds. The direct financial relationship is between the development bank and the financial intermediary.

Alter Modus DOO (Financial Intermediary)

Private Actors Description

A Private Actor is a non-governmental body or entity that is the borrower or client of a development project, which can include corporations, private equity and banks. This describes the private actors and their roles in relation to the project, when private actor information is disclosed or has been further researched.

MIKROKREDITNA FINANSIJSKA INSTITUCIJA ALTER MODUS DOO - Alter Modus ("AM") is the leading MFI in Montenegro, holding a 68.8% market share by total assets (as of YE 2023). It provides MSME and retail loans to its ca. 20,000 clients through 20 branches and outlets across the country.

Contact Information

This section aims to support the local communities and local CSO to get to know which stakeholders are involved in a project with their roles and responsibilities. If available, there may be a complaint office for the respective bank which operates independently to receive and determine violations in policy and practice. Independent Accountability Mechanisms receive and respond to complaints. Most Independent Accountability Mechanisms offer two functions for addressing complaints: dispute resolution and compliance review.

COMPANY CONTACT INFORMATION

Ana Kentera
ana.kentera@altermodus.me
+382 20 655 280
+382 20 655 260
https://altermodus.me/
Ul. Vucedolska br. 15 81000, Podgorica Montenegro

ACCESS TO INFORMATION

You can request information by emailing: accessinfo@ebrd.com or by using this electronic form: https://www.ebrd.com/eform/information-request

ACCOUNTABILITY MECHANISM OF EBRD

The Project Complaint Mechanism (PCM) is the independent complaint mechanism and fact-finding body for people who have been or are likely to be adversely affected by an European Bank for Reconstruction and Development (EBRD)-financed project. If you submit a complaint to the PCM, it may assess compliance with EBRD's own policies and procedures to prevent harm to the environment or communities or it may assist you in resolving the problem that led to the complaint through a dialogue with those implementing the project. Additionally, the PCM has the authority to recommend a project be suspended in the event that harm is imminent.

You can contact the PCM at: pcm@ebrd.com or you can submit a complaint online using an online form at: http://www.ebrd.com/eform/pcm/complaint_form?language=en

You can learn more about the PCM and how to file a complaint at: http://www.ebrd.com/work-with-us/project-finance/project-complaint-mechanism.html