Investment & Fund Management
million from the European Investment
Full Credential Description
The European Investment Bank (EIB) Group has provided 132 million in guarantees to Erste&Steiermärkische Bank d.d. (ESB) in Croatia to enhance financing for various businesses, particularly targeting Croatian Mid-Caps, micro-entrepreneurs, and social enterprises. This financial package includes a 100 million guarantee from the EIB and two portfolio guarantees totaling 32 million from the European Investment Fund (EIF).
The EIB guarantee is expected to facilitate up to 280 million in new financing for Croatian Mid-Caps, allowing ESB to offer lower interest rates and take on higher risks. The EIF's support specifically aims to strengthen ESB's lending to micro-entrepreneurs and social enterprises, with guarantees of 19.2 million for micro-entrepreneurs and 12.8 million for social enterprises, including NGOs. This initiative is part of the InvestEU programme, which focuses on improving financial inclusion and fostering entrepreneurship in Croatia, particularly for start-ups and first-time borrowers by providing favorable loan terms and reduced collateral requirements.
As a result of this collaboration, ESB anticipates lending up to 24 million to micro-entrepreneurs and up to 16 million to social enterprises. This partnership not only enhances financial opportunities for these organizations but also aims to contribute to job creation and economic development in the region. Since the beginning of their cooperation, ESB has provided a total of 926 million in loans supported by EIB and EIF funding, underscoring the significant impact of this financial backing on the Croatian economy.