EIB Group Bolsters Croatian Business Financing with €132 Million Guarantee Package

(IN BRIEF) The EIB Group has provided a €132 million guarantee package to Croatia-based Erste&Steiermärkische Bank d.d. to expand its lending to Croatian Mid-Caps, micro-entrepreneurs, and social enterprises. The package includes a €100 million guarantee from the EIB and €32 million from the EIF under the InvestEU programme, with expectations to generate up to €280 million in new financing. The initiative, aimed at offering more favorable loan terms and enhancing access to finance, is set to drive economic growth, job creation, and social inclusion across Croatia.

(PRESS RELEASE) LUXEMBOURG, 7-Mar-2025 — /EuropaWire/ — The European Investment Bank (EIB) Group has announced a significant support package totaling €132 million in guarantees for Croatia-based Erste&Steiermärkische Bank d.d. (ESB) to expand its financing capabilities across a range of businesses in Croatia. This comprehensive package includes a €100 million guarantee from the EIB itself and an additional €32 million in portfolio guarantees provided by the European Investment Fund (EIF). The combined support is designed to facilitate new lending opportunities that will benefit Croatian Mid-Caps, micro-entrepreneurs, and social enterprises alike.

With the EIB guarantee, ESB expects to unlock up to €280 million in new financing specifically targeted at Croatian Mid-Caps, thereby offering these businesses access to loans at lower interest rates while enabling ESB to assume greater risk in its lending portfolio. The favorable terms of this guarantee, which include flexible disbursements and an extended duration compared to market alternatives, are set to reinforce ESB’s competitive position and attract further long-term investment. In parallel, the €32 million guarantee from the EIF is aimed at bolstering financing for Croatian micro-entrepreneurs and social enterprises. This part of the package breaks down into a €19.2 million guarantee for micro-entrepreneurs and a €12.8 million guarantee for social enterprises, including non-governmental organizations.

The initiative falls under the InvestEU programme, a framework designed to promote financial inclusion, foster entrepreneurship, and drive sustainable social impact across Europe. In Croatia, this expanded cooperation between EIF and ESB will ease access to finance for start-ups and first-time borrowers by reducing collateral requirements and offering more attractive loan conditions. EIB Vice-President Teresa Czerwińska commented on the development, stating, “Ensuring businesses of all sizes have access to financing is fundamental to driving economic growth and stability. With this guarantee, we are reinforcing our commitment to supporting Croatian Mid-Caps, helping them seize new opportunities for expansion and innovation.” Similarly, EIF Chief Executive Marjut Falkstedt emphasized the importance of overcoming financial barriers for emerging enterprises by noting, “Access to finance remains one of the biggest challenges for start-ups and social enterprises. Our strengthened partnership with ESB will increase financial opportunities for these organisations and ultimately promote greater financial and social inclusion in Croatia.”

ESB’s Member of the Management Board, Hannes Frotzbacher, highlighted the long-standing success of the bank’s collaboration with the EIB Group, which has already delivered €926 million in loans to its clients through similar guarantee instruments. He added, “Support for micro-entrepreneurs and social enterprises, as well as medium-sized enterprises, is one of our key strategic pillars. With this new package, we now have additional financing instruments to support client growth, contribute to job creation in our communities, and drive the realization of numerous successful projects.”

This enhanced guarantee package not only underscores the strong partnership between the EIB Group and ESB but also aligns with broader efforts to promote sustainable economic development and social cohesion across Croatia. By providing access to competitive funding, the package is expected to play a crucial role in expanding credit to businesses that are vital drivers of growth and innovation in the region.

Background information

The European Investment Bank (ElB) is the long-term lending institution of the European Union, owned by its Member States. It finances sound investments that contribute to EU policy objectives. EIB projects bolster competitiveness, drive innovation, promote sustainable development, enhance social and territorial cohesion, and support a just and swift transition to climate neutrality.

The European Investment Fund (EIF) is part of the European Investment Bank Group. It supports Europe’s SMEs by improving their access to finance through a wide range of selected financial intermediaries, such as banks, guarantee and leasing companies, micro-credit providers and private equity funds. The EIF designs and offers equity and debt financing instruments fostering EU objectives in support of entrepreneurship, growth, innovation, research and development, the green and digital transitions, and employment.

Erste & Steiermärkische Bank d.d. (ESB)  Erste&Steiermarkische Bank d.d. originates from the former strong regional banks – Riječka, Bjelovarska, Trgovačka and Čakovečka banka – and has been operating under this name since 1 August 2003. Today it is a modern bank, ranked No3 on the Croatian market by total assets, and a part of the international Erste Group, one of the leading financial service providers in CEE. What makes Erste Bank different is its employees, their approach to work, innovation, and care for the clients. The Bank has been posting great business results for years, continuously investing in digital development that facilitates innovation and creativity in customer service. By supporting the financial needs of the citizens and financing sound and profitable projects implemented by entrepreneurs and companies contributing to employment growth in the real sector, the Bank adequately supports the development of the entire economy.

The InvestEU programme provides the European Union with crucial long-term funding by leveraging substantial private and public funds in support of a sustainable recovery and growth. It also helps mobilise private investments for the European Union’s policy priorities, such as the European Green Deal and the digital transition. InvestEU brings together under one roof the multitude of EU financial instruments, making funding for investment projects in Europe simpler, more efficient and more flexible. The InvestEU Fund is implemented through financial partners that will invest in projects using EU budget guarantee of €26.2 billion. That guarantee will back investment projects of the implementing partners, increase their risk-bearing capacity and thus mobilise at least €372 billion in additional investment.

Media Contacts:

EIB: Tina Drolc | +386 13206240 | t.drolc@ext.eib.org

Website: www.eib.org/press – Press Office: press@eib.org

EBC: Danijela Trbovic | +385 99 2371 531 | dtrbovic@erstebank.hr

SOURCE: European Investment Fund