Investment & Fund Management

The Western Balkans Guarantee 4 SME Resilience initiative, funded by the EU, addresses the critical financing challenges faced by small and medium-sized enterprises (SMEs) in North Macedonia, Bosnia and Herzegovina, and Montenegro. This program aims to enhance access to finance under favorable lending conditions, which is essential for fostering small business growth, boosting employment, and enhancing competitiveness in the region.

As part of this initiative, the European Investment Fund (EIF) has committed €4.8 million in guarantee agreements, which will enable local banks to create a portfolio of €60 million in concessional loans specifically designed for SMEs. This funding is expected to support approximately 15,000 companies and preserve around 140,000 jobs across the Western Balkans. The initiative is structured to mobilize significant financial resources, with projections indicating that it will unlock over €20 million in loans for 125 small businesses in North Macedonia, €25 million for 150 businesses in Bosnia and Herzegovina, and €15 million for 100 companies in Montenegro, collectively sustaining around 5,750 jobs.

The guarantees provided through this program allow partner banks to offer loans with lower interest rates, reduced collateral requirements, and extended maturities, thereby enabling SMEs to expand their operations and adapt to market developments. This targeted financial support is a crucial step in enhancing the economic resilience of the region and aligns with the EU's broader goals of promoting growth and job creation in the Western Balkans. Since its launch in November 2022, the initiative has successfully signed agreements with 18 financial institutions, unlocking a total of €886 million in loans, demonstrating its significant impact on the local economies.