The European Investment Bank (EIB) Group has provided €132m ($143m) in guarantees to Erste Bank Croatia (ESB) to expand lending to Croatian businesses.
This initiative is aimed at bolstering ESB’s lending capabilities to mid-caps, micro-entrepreneurs, and social enterprises.
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The financial support comprises a €100m guarantee from the EIB and two portfolio guarantees from the European Investment Fund (EIF), totalling €32m.
By leveraging EIB guarantee, ESB plans to potentially create €280m in new financing for Croatian mid-cap companies.
EIB vice-president Teresa Czerwińska said: “Ensuring businesses of all sizes have access to financing is fundamental to driving economic growth and stability.
“With this guarantee, we are reinforcing our commitment to supporting Croatian mid-caps, helping them seize new opportunities for expansion and innovation.”
The EIF’s contribution is designated to enhance ESB’s lending in Croatia, comprising €12.8m for social enterprises and €19.2m in guarantees for micro-entrepreneurs.
This segment of the financial package is an extension of the EIF-ESB collaboration under the InvestEU programme, which aims to promote financial inclusion and encourage entrepreneurship.
EIF CEO Marjut Falkstedt said: “Access to finance remains one of the biggest challenges for start-ups and social enterprises.
“On the back of strong demand in the Croatian market, we are renewing our partnership with ESB, increasing financial opportunities for these organisations and ultimately enabling them to contribute to financial and social inclusion in Croatia.”
The new EIF guarantees allows ESB to lend up to €24m for the micro-entrepreneurs and up to €16m for social enterprises.
In January 2025, Rabobank from the Netherlands and the EIB increased their support for sustainable SMEs.
