The European Union has launched a significant financial initiative aimed at supporting small and medium-sized enterprises (SMEs) in the Western Balkans. The Western Balkans Guarantee 4 SME Resilience programme, backed by a €60 million EU guarantee, has successfully mobilized €886 million in concessional loans. This effort targets SMEs in North Macedonia, Bosnia and Herzegovina, and Montenegro, with the goal of assisting 15,000 firms and preserving approximately 140,000 jobs.
The European Investment Fund (EIF), part of the EIB Group, has finalized its commitment with a €4.8 million placement alongside Sparkasse Bank AD Skopje, Sparkasse Bank BiH, and Erste Bank Podgorica. These guarantees will support a new €60 million concessional lending portfolio managed by Erste & Steiermärkische Bank d.d., based in Croatia.
Under this program, North Macedonia is expected to receive over €20 million for around 125 SMEs; Bosnia and Herzegovina will benefit from €25 million supporting 150 firms; and Montenegro will access €15 million for approximately 100 companies. These funds are projected to sustain about 5,750 jobs across these regions.
“Through these guarantees, our partner banks can provide businesses with lower interest rates, reduced collateral requirements, and longer repayment terms,” said EIF Chief Executive Marjut Falkstedt. “This support empowers SMEs to scale operations and adapt to evolving market conditions.”
Commissioner for Enlargement Marta Kos stated that signing these agreements marks “a milestone in deepening our partnership with the Western Balkans.” She emphasized that the initiative supports business growth and job creation while enhancing competitiveness.
Christoph Schoefboeck, CEO of Erste & Steiermärkische Bank d.d., remarked on the importance of leveraging experience through the Western Balkans Investment Framework to offer advantageous loan conditions to SMEs.
Since its inception in November 2022, the program has partnered with 18 financial institutions across the region. It continues to bolster economic resilience by unlocking favorable loans for thousands of businesses.
The EIF plays a crucial role within the EIB Group by improving access to finance for SMEs throughout Europe. In alignment with EU objectives such as entrepreneurship and innovation, it fosters projects contributing significantly to climate change mitigation.
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Gordana Kovacevic
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Phone: +352 4379 70356