Finance for Croatian micro-entrepreneurs thanks to EIF and Vaba Bank Inc. Varazdin signature

The European Investment Fund and Vaba Bank Inc. Varazdin, have signed a senior loan agreement, helping to provide enhanced access to finance for micro-businesses in Croatia.

The EIF will make a senior loan of up to EUR 5million available to Vaba Bank Inc. Varazdin, allowing the bank to establish a new micro-loan lending programme to micro-entrepreneurs, worth up to EUR 10million. 

Vaba Bank Inc. Varazdin is a retail lending bank in the north eastern part of Croatia (Varazdin), operating 11 branches across the region. This new micro-lending scheme will allow Vaba bank to build on its expertise in micro-lending and help to foster economic growth while at the same time promoting social inclusion. 

Vaba Bank’s Inc. Varzadin microloans will provide medium-long term funding for entrepreneurs and it is expected that the full allocation will be disbursed to micro-entrepreneurs in the next two years.

The EIF will co-finance up to 50% of these micro-loans and the rest of the finance will be provided from Vaba Banka’s own funds. This deal was signed under the Risk Capital mandate, which supports risk capital investments in SMEs across the EU. 

About the EIF

The EIF central mission is to support Europe’s SMEs by helping them to access finance.  EIF designs and develops venture capital and guarantees instruments which specifically target this market segment. In this role, the EIF fosters EU objectives in support of innovation, research and development, entrepreneurship, growth, and employment.  

About Vaba Bank Inc. Varazdin 

From its establishment in 2005 Vaba Bank Inc. Varazdin has recorded significant growth and has developed a network of 11 branches and 2 financial centres in 5 counties. Vaba Bank is the only bank in Croatia with local government participating in the ownership structure. Therefore it has established strong cooperation with local government and community and it supports the development of the Varaždin region. In past years it has achieved very good results with several projects i.e. Micro loans for entrepreneurs of Varazdin county, student loans for students from Varazdin county as well as Cash pool project for local government bodies in Varazdin county. 

For further information, please contact David Yormesor, d.yormesor@eif.org, or visit EIF’s website www.eif.org