Additional finance for businesses in Croatia as the EIF and Privredna banka Zagreb sign CIP agreement

The EIF and Privredna banka Zagreb (PBZ) signed a CIP guarantee agreement supporting micro-enterprises in Zagreb today. Thanks to the transaction under the Competitiveness and Innovation Programme (CIP), micro-entrepreneurs can now have easier access to finance due to substantially reduced collateral requirements, pricing and longer repayment periods.

This transaction will generate a portfolio of new loans worth EUR 30m, over the next 3 years. Privredna Banka Zagreb is one of the leading commercial banks in Croatia and this transaction will help the bank to reach out to a wider client base across the country.

Commenting on the deal, European Investment Fund (EIF) Structured Finance Manager Olivier Edelman said: “I am delighted to be signing the first CIP micro-credit agreement in Croatia for the benefit of local SMEs. This contract demonstrates the role Privredna banka Zagreb is playing in helping to enhance access to finance for local entrepreneurs. We are confident that this additional EUR 30 million will help support a number of micro-business in Croatia in the coming months."

“Privredna Banka Zagreb has been active for many years in establishing and supporting programs aimed at the further development of SMEs, thereby, showing that the bank plays a significant role in its commitment to strong growth of the country's SME segment This is also underlined by these participation in the CIP programme which provided us with the opportunity to structure a new, unique product (EU sinergo loan) for small and medium sized entrepreneurs " said Božo Prka, CEO of PBZ.

Notes to editors

About the EIF

EIF's central mission is to support Europe's small and medium-sized businesses (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, EIF fosters EU objectives in support of innovation, research and development, entrepreneurship, growth, and employment. The EIF total net commitments to private equity funds amounted to over EUR 6bn at end 2011. With investments in over 370 funds, the EIF is a leading player in European venture due to the scale and the scope of its investments, especially in high-tech and early-stage segments. The EIF guarantees loan portfolio totalled over EUR4.4bn in close to 220 operations at end 2011, positioning it as a major European SME guarantees actor and a leading micro-finance guarantor.

About CIP

The Competitiveness and Innovation Framework Programme (CIP), which spans from 2007 to 2013, has been put in place to boost European productivity, innovation capacity and sustainable growth, whilst simultaneously addressing complementary environmental concerns.

Within the framework of the CIP, the European Investment Fund (EIF) has been allocated EUR 1.1bn to be split between venture capital – with the High Growth and Innovative SME Facility (GIF) - and guarantees – with the SME Guarantee Facility (SMEG).

 

About Privredna Banka Zagreb

Privredna Banka Zagreb (PBZ) was founded in 1966. With an established business base and a highly recognized national brand name PBZ is a modern universal bank and the second largest banking group in Croatia, with more than 1.6 million clients and the most extensive branch network with over 200 branches. On top of core banking services the PBZ Group offers a diverse range of specialized services including leasing, real estate business, fund management and credit card services.  PBZ is a member of one of the biggest European banking groups - Intesa Sanpaolo which owns 76.6% of its share capital. www.pbz.hr

Press contact:

EIF: David Yormesor, e-mail:d.yormesor@eif.org

PBZ: Dražen Dumančić, e-mail:drazen.dumancic@pbz.hr Tel:+385 (0) 1 6360 259