EBRD Launches Risk-Sharing Framework with PBZ to Boost Financing for Croatian Businesses

EBRD Launches Risk-Sharing Framework with PBZ to Boost Financing for Croatian Businesses

(IN BRIEF) The European Bank for Reconstruction and Development (EBRD) initiates a new risk-sharing framework with Privredna banka Zagreb d.d. (PBZ), offering up to €75 million in guarantees to share partner banks’ exposure to local enterprises in Croatia. PBZ, part of the Intesa Sanpaolo Group, becomes the first beneficiary, aiming to enhance financing opportunities for both large companies and small and medium-sized enterprises (SMEs). This initiative, part of the EBRD’s Small Business Initiative, underscores the bank’s commitment to supporting private sector development in Croatia. Dinko Lucić, President of the Management Board of PBZ, highlights the program’s flexibility and potential to provide capital relief, addressing challenges faced by private companies in accessing favorable financing.

(PRESS RELEASE) LONDON, 27-Mar-2024 — /EuropaWire/ — The European Bank for Reconstruction and Development (EBRD) is launching a new risk-sharing framework for Croatian banks, with Privredna banka Zagreb d.d. (PBZ), part of the Intesa Sanpaolo Group, the first to benefit.

The framework is designed to allow the EBRD to share partner banks’ exposure to local enterprises, be they large companies or small and medium-sized enterprises (SMEs), through an unfunded risk participation. The EBRD will guarantee up to 65 per cent of each individual sub-loan provided by PBZ to eligible clients. The Bank’s commitment under the agreement could reach up to €75 million.

The risk-sharing framework is one of three core financing frameworks of the EBRD’s Small Business Initiative – a programme dedicated to supporting and developing local private companies. The EBRD offers partner banks funded or unfunded risk participation mechanisms by co-financing and guaranteeing the partner bank’s loans to eligible companies.

Mark Davis, EBRD Regional Director for Central Europe, said: “We are pleased to partner with PBZ to expand financing opportunities for growing companies. The EBRD’s risk-participation mechanism will enable PBZ to manage capital and risk concentration and facilitate credit growth for the benefit of the real economy.”

Dinko Lucić, President of the Management Board of PBZ, said: “PBZ has been a strong, long-standing partner of the EBRD through various programmes. We are delighted to be the first bank in Croatia to participate in this new risk-sharing framework. Recognising the need for a more flexible and customised approach, with this programme, we aim to enhance our risk-taking capacity and obtain capital relief, thereby responding to the challenges that private companies, both large enterprises and SMEs, face in obtaining favourable financing.”

The Intesa Sanpaolo Group is one of the largest banking groups in Europe. PBZ is the second-largest bank and financial group in Croatia by assets, with a market share of around 20 per cent in various operating segments. It is a market leader in many areas, such as cards and new technologies, continuously developing innovative products and services for retail, corporate and SME clients.

PBZ is also a centre of excellence for many areas of banking within the International Subsidiary Banks Division of the Intesa Sanpaolo Group. It, therefore, became a regional banking hub following the acquisition of the majority stakes of Intesa Sanpaolo banks in Bosnia and Herzegovina and Slovenia.

Strengthening private-sector competitiveness and supporting local SMEs through indirect financing, including risk-sharing facilities, are among the EBRD’s key priorities in Croatia. One of the largest institutional investors in the country, the EBRD has invested more than €4.7 billion in 248 projects in Croatia – over €300 million of it in 2023 – largely in the private sector.

Media Contact:

Tel: +44 207 338 7805
Email: Group-PressUnit@ebrd.com

SOURCE: EBRD