Investment & Fund Management

The European Investment Fund (EIF) and Erste Group Bank signed a Social Entrepreneurship guarantee agreement to provide EUR 50 million in financing for social organizations across Austria, Croatia, the Czech Republic, Hungary, Romania, Slovakia, and Serbia. This initiative, supported by the EU Programme for Employment and Social Innovation (EaSI), aims to address the financing challenges faced by social entrepreneurs and non-profit organizations, particularly those working in education, health, and social services sectors, or employing marginalized groups.

The tailored solution allows Erste Group’s network of local banks to offer loans at reduced interest rates and with lower collateral requirements, enabling over 500 social organizations to access necessary funding over the next five years. This agreement is significant as it marks the first of its kind in Hungary and is part of a broader effort to promote inclusive entrepreneurship and combat social exclusion.

As a result of this initiative, social enterprises will receive support to start and develop their businesses, which is expected to create jobs and foster inclusive growth at the grassroots level. The EIF Chief Executive highlighted the importance of this agreement in providing new financing opportunities for social enterprises, while Erste Group's CEO emphasized the role of social organizations in addressing pressing societal issues and the commitment to meet their financial needs for greater impact.