The European Investment Fund (EIF) and Privredna banka Zagreb (PBZ) have signed a COSME agreement in Croatia that will allow PBZ to provide HRK 350 million (ca. EUR 45.7 million) of loans to small and medium-sized Croatian businesses. This agreement was made possible by the support of the European Fund for Strategic Investments (EFSI). EFSI is the central pillar of the European Commission's Investment Plan for Europe.
Today's agreement will allow PBZ to launch three new loan products for SMEs – two loan products for micro and small businesses i.e. investment loan and working capital loan, and instrument loan for medium sized enterprises.
The loans will be made available with substantially reduced collateral requirements as a result of an EIF guarantee under the COSME programme with financial backing from EFSI. Around 600 Croatian SMEs are expected to benefit from the loans which will be approved in the course of the next three years. The loans will enable SME businesses to expand, innovate and create new jobs.
European Commissioner for International Cooperation and Development, Neven Mimica said: “SMEs are a driving force for jobs and growth in Croatia. Today's EFSI-backed agreement, the third to support Croatian SMEs, demonstrates that the Investment Plan is working to give small businesses the tools they need to innovate, expand and create jobs. I look forward to hearing the success stories that will surely follow today's announcements.”
EIF Deputy Chief Executive, Roger Havenith, said: "Support for businesses and the creation of jobs and growth, lies at the heart of EIF’s strategy. EIF is committed to supporting Croatian SMEs and is pleased to be signing, in less than a year, another EFSI SME agreement in the country, with our long standing partner PBZ. As one of the largest banks in Croatia, I am convinced that PBZ is well-placed to reach out and enhance access to finance for companies across the country."
Božo Prka, PBZ’s CEO, said "Privredna banka Zagreb has been active for many years in establishing and supporting programs aimed at the further development of SMEs, thereby, showing that the bank plays a significant role in its commitment to strong growth of the country's SME segment This is also underlined in its participation, firstly in the CIP programme and now in the COSME programme. COSME programme provided us with the opportunity to structure three new products for SME businesses aiming to support their growth and development."