EU Guarantee Scheme Unlocks €886 Million in Concessional Loans to Boost SMEs and Jobs in the Western Balkans

EU Guarantee Scheme Unlocks €886 Million in Concessional Loans to Boost SMEs and Jobs in the Western Balkans

(IN BRIEF) The EU-funded Western Balkans Guarantee 4 SME Resilience programme has catalyzed €886 million in concessional loans for SMEs in North Macedonia, Bosnia and Herzegovina, and Montenegro, aiming to support 15,000 firms and preserve 140,000 jobs. Backed by a €60 million EU guarantee, the EIF has completed its commitment with a final €4.8 million placement alongside Sparkasse Bank AD Skopje, Sparkasse Bank BiH, and Erste Bank Podgorica. Managed by Erste & Steiermärkische Bank d.d., the facility will deploy over €20 million in North Macedonia, €25 million in Bosnia and Herzegovina, and €15 million in Montenegro, offering reduced interest rates, lower collateral needs, and extended maturities. This initiative, part of the EU’s Reform and Growth Facility, enhances SMEs’ ability to grow, adapt, and compete, driving inclusive economic resilience in the Western Balkans.

(PRESS RELEASE) LUXEMBOURG, 24-Jun-2025 — /EuropaWire/ — The EU-backed Western Balkans Guarantee 4 SME Resilience programme is delivering favourable lending terms to small and medium-sized enterprises (SMEs), spurring business expansion, job retention, and regional competitiveness. Aligned with the EU’s Reform and Growth Facility for the Western Balkans, this €60 million guarantee scheme enhances access to finance for SMEs—critical engines of inclusive growth and employment—across North Macedonia, Bosnia and Herzegovina, and Montenegro.

To date, the initiative has mobilized €886 million in loans, targeting support for 15,000 companies and safeguarding approximately 140,000 jobs. The European Investment Fund (EIF), part of the EIB Group, has now signed the final €4.8 million in guarantee agreements with Sparkasse Bank AD Skopje, Sparkasse Bank BiH, and Erste Bank Podgorica. These guarantees will underpin a new €60 million concessional lending portfolio managed on behalf of the Western Balkans Investment Framework by Erste & Steiermärkische Bank d.d. in Croatia.

Under the programme, North Macedonia is set to receive over €20 million in subsidized loans for around 125 SMEs; Bosnia and Herzegovina will benefit from €25 million supporting 150 firms; and Montenegro will unlock €15 million in credit lines for approximately 100 companies. Collectively, these funds are projected to sustain about 5,750 jobs in the three markets.

“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, reinforcing a resilient and competitive economy.”

Commissioner for Enlargement Marta Kos added, “Signing these agreements marks a milestone in deepening our partnership with the Western Balkans. With €4.8 million of EU backing unlocking up to €60 million in concessional loans, we’re enhancing affordable financing for SMEs, in direct support of the Reform and Growth Facility goals: business growth, job creation, and heightened competitiveness. This tangible assistance brings the region closer to its European future.”

Christoph Schoefboeck, CEO of Erste & Steiermärkische Bank d.d., remarked, “Managing these guarantees through the Western Balkans Investment Framework allows us to leverage our experience and longstanding cooperation with the EIB Group. We’re committed to helping our colleagues in North Macedonia, Bosnia and Herzegovina, and Montenegro provide clients with advantageous loan conditions, bolstering SMEs as vital drivers of local economic development.”

Since its November 2022 launch, the Western Balkans Guarantee 4 SME Resilience has partnered with 18 financial institutions across the region, unlocking €886 million in favourable loans to date and reinforcing the capacity of 15,000 businesses while securing 140,000 jobs.

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.

High-quality, up-to-date photos of our headquarters for media use are available here.

Press contacts:

Gordana Kovacevic, g.kovacevic@eib.org, tel.: +352 4379 70356
Website: www.eib.org/press – Press Office: press@eib.org

SOURCE: European Investment Fund