Investment & Fund Management
The European Investment
Full Credential Description
The European Investment Fund (EIF) and Privredna banka Zagreb (PBZ) entered into a COSME agreement in Croatia, aimed at addressing the financing challenges faced by small and medium-sized enterprises (SMEs) in the region. The specific issue was the limited access to finance for SMEs, which often struggle with high collateral requirements that hinder their ability to secure loans for growth and innovation.
To tackle this problem, the EIF facilitated a financial agreement that enabled PBZ to offer HRK 350 million (approximately EUR 45.7 million) in loans to SMEs. This initiative was supported by the European Fund for Strategic Investments (EFSI), which provided a guarantee that significantly reduced the collateral requirements for borrowers. As a result, PBZ launched three new loan products tailored for different segments of the SME market: an investment loan and a working capital loan for micro and small businesses, along with an instrument loan for medium-sized enterprises.
The expected outcome of this initiative is substantial, with around 600 Croatian SMEs projected to benefit from these loans over the next three years. The financial support is designed to empower these businesses to expand their operations, innovate their offerings, and ultimately create new jobs within the Croatian economy. This agreement marks a significant step in enhancing access to finance for SMEs in Croatia, demonstrating the effectiveness of the EFSI-backed initiatives in fostering economic growth and job creation.