BAKU, Azerbaijan, March 7. The European Investment Bank (EIB) Group has provided 132 million euros in financial backing to Croatia’s Erste&Steiermärkische Bank d.d. (ESB) to expand its lending to businesses, Trend reports.
The package includes a 100 million euro guarantee from the EIB and 32 million euros in portfolio guarantees from the European Investment Fund (EIF).
ESB plans to use the EIB guarantee to generate up to 280 million euros in financing for Croatian Mid-Caps, offering lower interest rates and increased risk-taking capacity. The EIF support aims to bolster lending to micro-entrepreneurs and social enterprises in Croatia, including guarantees for 19.2 million euros for micro-entrepreneurs and 12.8 million euros for social enterprises and NGOs.
The partnership under the InvestEU programme will support start-ups, first-time borrowers, and social enterprises by providing more favorable loan terms, such as reduced collateral requirements. EIF Chief Executive Marjut Falkstedt emphasized the importance of improving access to finance for start-ups and social enterprises to promote financial and social inclusion in Croatia.
This new funding builds on a strong history of cooperation between ESB, the EIB, and EIF, with 926 million euros in loans already provided to clients supported by EIB and EIF funding.