EU guarantees to enable €60 million in loans for sustainable growth in small businesses in North Macedonia, Bosnia and Herzegovina and Montenegro

• The EU-funded Western Balkans Guarantee 4 SME Resilience is supporting financing under favourable lending conditions, contributing to small business growth and boosting employment and competitiveness.
• This initiative complements the EU’s broader commitment to the region under the Reform and Growth Facility for the Western Balkans, improving access to finance for SMEs, a key driver of inclusive growth and job creation.
• As of today, this €60 million EU-funded Guarantee programme has unlocked a total of €886 million in financing to SMEs, offering favorable lending conditions that aim to support 15,000 companies and preserve 140,000 jobs.

The European Investment Fund (EIF), part of the European Investment Bank (EIB) Group, has signed €4.8 million in guarantee agreements, the last portion of the €60 million EU funds to be committed from the EU’s guarantee, with Sparkasse Bank Ad Skopje, Sparkasse Bank BiH and Erste Bank Podgorica. This 4.8 million will allow local banks to create a new portfolio to finance small and medium enterprises (SMEs) totalling €60 million in concessional loans under the Guarantee 4 SME Resilience initiative, facilitated by the European Union’s Western Balkans Investment Framework. Croatia-based Erste & Steiermärkische Bank d.d. will manage the coordination of the guarantees.

Funded by the European Union, this initiative aims to increase access to favourable financing for SMEs to help them respond to market challenges, expand their businesses and create jobs. In North Macedonia, the facility is expected to mobilise over €20 million in concessional loans to some 125 small businesses. It will also unlock €25 million in loans for Bosnia and Herzegovina, supporting 150 businesses, as well as €15 million in credit lines for 100 companies in Montenegro. The funds are expected to help sustain around 5,750 jobs.

EIF Chief Executive Marjut Falkstedt said: “These guarantees will enable our partner banks to offer loans with favourable conditions to businesses in North Macedonia, Bosnia and Herzegovina and Montenegro featuring lower interest rates, reduced collateral requirements and extended maturities. This support will help companies to expand their operations and adapt to the latest market developments, thus fostering a competitive and resilient economy.”

Commissioner for Enlargement, Marta Kos said: “The signature of these new guarantee agreements marks another important step in deepening the EU’s partnership with the Western Balkans. With €4.8 million in EU backing, these guarantees will unlock up to €60 million in concessional loans, significantly improving access to affordable finance for micro, small, and medium-sized enterprises in North Macedonia, Bosnia and Herzegovina, and Montenegro. This initiative directly supports the goals of the Reform and Growth Facility for the Western Balkans, helping businesses grow, create quality jobs, and strengthen the region’s competitiveness. It is through such tangible, targeted support that we advance economic resilience and bring the Western Balkans closer to their European future.”

Christoph Schoefboeck, CEO of Erste & Steiermärkische Bank d.d. said: “We are very pleased that we had the opportunity to manage the coordination of the Western Balkans Guarantee 4 SME Resilience under the Umbrella scheme, facilitated by the European Union’s Western Balkans Investment Framework. With our well-grounded experience and know-how, backed by a long-term and successful cooperation between Erste Bank Croatia and the EIB Group, we look forward to supporting our colleagues in North Macedonia, Bosnia and Herzegovina and Montenegro to provide their clients with more favourable lending conditions.  We do believe that small and medium enterprises are the backbone and important drivers of economic development. Thus, we are convinced that such portfolio financing scheme shall contribute to their stronger and more resilient competitiveness on local markets.”

Since the Western Balkans Guarantee 4 SME Resilience was launched in November 2022, the EIF – in partnership with the European Commission – has signed guarantee agreements with 18 financial institutions across the region, unlocking a total of €886 million in loans with favourable lending conditions, which are expected to support 15,000 companies and secure 140,000 jobs in the Western Balkans.

Background information

EIF

The European Investment Fund (EIF) is part of the European Investment Bank (EIB) Group. It supports small and medium-sized enterprises (SMEs) in Europe by improving their access to finance through a wide range of selected financial intermediaries. The EIF designs, promotes and implements equity and debt financing instruments targeting SMEs. In this role, the EIF fosters EU objectives in support of entrepreneurship, growth, innovation, research and development, the green and digital transitions and employment. The EIB Group, which also includes the European Investment Fund (EIF), signed nearly €89 billion in new financing for over 900 high-impact projects in 2024, boosting Europe’s competitiveness and security. 

All projects financed by the EIB Group are in line with the Paris Climate Agreement, as pledged in our Climate Bank Roadmap. Almost 60% of the EIB Group’s annual financing supports projects directly contributing to climate change mitigation, adaptation, and a healthier environment. Fostering market integration and mobilising investment, the Group supported a record of over €100 billion in new investment for Europe’s energy security in 2024 and mobilised €110 billion in growth capital for startups, scale-ups and European pioneers. Approximately half of the EIB's financing within the European Union is directed towards cohesion regions, where per capita income is lower than the EU average.

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