EIF Provides Erste Bank with a Guarantee of Up to 100 Million Euros for Support

The European Investment Fund (EIF) has secured a second increase in the guarantee line for Erste & Steiermärkische Bank d.d. Croatia (Erste Bank) for innovative small and medium-sized enterprises (SMEs) and small mid-cap companies in Croatia, up to a maximum amount of 100 million euros. The agreement is supported by a guarantee from the InvestEU portfolio of the European Union.

The guarantee agreement signed today is based on the successful collaboration between the EIF and Erste Bank that began in 2022 under the InvestEU program, aimed at improving access to long-term financing for Croatian innovative companies, enhancing the competitiveness of innovative firms, promoting job creation, and supporting income security across Croatia. EIF and Erste Bank have increased the guarantee twice in response to the growing market demand for this type of financial instrument.

– EIF guarantees enable Erste Bank to support business growth, digital transformation, sustainability, and the Croatian creative industries. It is important to note that the guarantee will also be directed towards companies in areas of just transition and cohesion, ensuring balanced regional development and equal opportunities throughout Croatia. The strong partnership with Erste Bank demonstrates our shared commitment to building a more sustainable and competitive Croatian economy – said Merete Clausen, Deputy Chief Executive of the EIF.

The CEO of Erste Bank, Christoph Schoefboeck, stated: “Since 2016, Erste Bank has nurtured a strong partnership with the European Investment Fund. This collaboration has introduced various guarantee instruments, such as InnovFin, EaSI, EGF, and unlimited and limited guarantees under the InvestEU program, leading to the realization of numerous successful projects. The bank has successfully supported nearly 2,000 transactions totaling 653 million euros. The guarantee for innovation and digitalization under the InvestEU program plays a key role in providing support to companies dedicated to innovation and digitalization. It facilitates access to financing for clients focused on research and innovation while promoting the adoption of digital technologies and the digital transformation of companies. This guarantee is exceptionally well recognized in the market, confirming its effectiveness and the bank’s commitment to fostering innovation and digital growth.”

Including all guarantees under the InvestEU program, the total amount of financing for innovative small and medium-sized enterprises and small mid-cap companies at Erste Bank guaranteed by EIF guarantees reaches 305 million euros, benefiting approximately 240 companies with projects in the fields of innovation, sustainability, and the culture and creative sectors.

The guarantee under the InvestEU program is provided by the European Union to support key EU policy objectives, including competitiveness, innovation, social inclusion, and green transformation. The InvestEU program brings together a range of EU financial instruments to promote investment, innovation, and job creation across Europe. EIF, as part of the EIB Group, plays a key role in implementing guarantees under the InvestEU program for financial intermediaries.