The European Union is backing €60 million in concessional loans to small businesses in North Macedonia, Bosnia and Herzegovina, and Montenegro under a regional guarantee scheme designed to boost sustainable growth and job creation, the European Investment Fund (EIF) said on Tuesday.
The latest tranche of €4.8 million in EU-backed guarantees, signed with Sparkasse Bank AD Skopje, Sparkasse Bank BiH and Erste Bank Podgorica, will unlock new SME lending portfolios worth €60 million, the EIF said in a statement.
The initiative, part of the EU’s Western Balkans Guarantee 4 SME Resilience programme, is aimed at improving access to finance for small and medium-sized enterprises (SMEs) through reduced interest rates, lower collateral demands and longer repayment terms.
“This support will help companies to expand operations and adapt to market developments, fostering a competitive and resilient economy,” EIF Chief Executive Marjut Falkstedt said.
The guarantees are part of the EU’s wider Reform and Growth Facility for the Western Balkans, which seeks to align regional economies with EU standards and stimulate inclusive growth. The total financing unlocked by the programme since its launch in November 2022 has reached €886 million, supporting an estimated 15,000 companies and preserving around 140,000 jobs.
Under the latest agreement, around €20 million in loans will be allocated to about 125 companies in North Macedonia, €25 million to 150 firms in Bosnia and Herzegovina, and €15 million to 100 SMEs in Montenegro. The funding is expected to help sustain some 5,750 jobs across the three countries.
“The EU is taking concrete steps to bring the Western Balkans closer to its European future,” said EU Enlargement Commissioner Marta Kos. “These guarantees will significantly improve access to affordable finance for micro, small and medium enterprises.”
Croatia-based Erste & Steiermärkische Bank d.d. will manage coordination of the guarantee portfolio.
The EIF, part of the European Investment Bank (EIB) Group, plays a key role in facilitating EU objectives on entrepreneurship, green transition, innovation, and employment by providing tailored financial instruments through partner institutions.