The European Investment Fund (EIF), part of the European Investment Bank (EIB) Group, has signed €4.8 million in guarantee agreements, completing the commitment of €60 million in EU-backed funds for small and medium-sized enterprises (SMEs) in the Western Balkans. The agreements were signed with Sparkasse Bank Ad Skopje, Sparkasse Bank BiH, and Erste Bank Podgorica.
This final tranche of €4.8 million will enable local partner banks to provide a total of €60 million in concessional loans under the Guarantee 4 SME Resilience initiative. The program is supported by the European Union through the Western Balkans Investment Framework, with Erste & Steiermärkische Bank d.d. in Croatia acting as coordinator.
The initiative is designed to help SMEs overcome market challenges, expand operations, and generate employment. In North Macedonia, it is expected to unlock over €20 million in loans for around 125 small businesses. Bosnia and Herzegovina will see €25 million in support for 150 businesses, and Montenegro will benefit from €15 million in loans to 100 companies. The financing is anticipated to help sustain approximately 5,750 jobs across the three countries.
EIF Chief Executive Marjut Falkstedt stated that the guarantees would enable banks to offer loans on more favorable terms, including lower interest rates, reduced collateral demands, and longer repayment periods. This, she said, will help companies grow and adapt to evolving market needs, boosting competitiveness and resilience.
EU Enlargement Commissioner Marta Kos emphasized the strategic significance of the new agreements, saying they reflect the EU’s deepening partnership with the Western Balkans. According to her, the guarantees will provide vital access to finance for micro, small, and medium enterprises, directly supporting the Reform and Growth Facility for the Western Balkans and helping the region progress toward EU integration.
Christoph Schoefboeck, CEO of Erste & Steiermärkische Bank d.d., expressed pride in coordinating the initiative, citing his bank’s longstanding cooperation with the EIB Group. He underlined the crucial role of SMEs in driving economic growth and emphasized that such financing schemes are essential for strengthening their competitiveness and resilience.
Launched in November 2022, the Western Balkans Guarantee 4 SME Resilience has so far led to 18 guarantee agreements with financial institutions in the region, mobilizing €886 million in concessional loans. These loans are expected to support 15,000 businesses and safeguard up to 140,000 jobs throughout the Western Balkans.
