Investment & Fund Management

The European Investment Fund (EIF) and Privredna banka Zagreb (PBZ) entered into a COSME agreement in Croatia, enabling PBZ to provide HRK 350 million (approximately EUR 45.7 million) in loans to small and medium-sized enterprises (SMEs). This initiative was supported by the European Fund for Strategic Investments (EFSI), which is a key component of the European Commission's Investment Plan for Europe. The agreement allows PBZ to introduce three new loan products specifically designed for SMEs: an investment loan and a working capital loan for micro and small businesses, along with an instrument loan for medium-sized enterprises.

A significant challenge faced by SMEs in Croatia was the high collateral requirements traditionally associated with obtaining loans. The EIF guarantee under the COSME programme significantly reduced these collateral requirements, making it easier for SMEs to access the necessary financing. It is anticipated that around 600 Croatian SMEs will benefit from these loans over the next three years, facilitating their expansion, innovation, and job creation.

The EIF's Deputy Chief Executive, Roger Havenith, emphasized the organization's commitment to supporting SMEs and fostering job growth in Croatia. The collaboration with PBZ, one of the largest banks in the country, is expected to enhance access to finance for businesses across Croatia, thereby contributing to the overall economic development of the region.