• Launched in 2022, the European Union-funded WB EDIF Guarantee for small and medium enterprises (SMEs) Resilience Initiative will increase access to finance for SMEs and their ability to cope with challenging economic circumstances.
• Available under affordable lending conditions, the financing made possible by the guarantee will contribute to business expansion, employment and economic growth in the region.
• In Bosnia and Herzegovina, EIF guarantees have unlocked around €235 million in total to date for around 1 000 small businesses, which has helped sustain some 62 000 jobs. 

The European Investment Fund (EIF), part of the EIB Group, has signed portfolio guarantee agreements with 11 banks and financial intermediaries in the Western Balkans economies. Funded under the European Union’s WB EDIF (Western Balkans Enterprise Development and Innovation Facility) Guarantee for SME Resilience Initiative, these agreements will enable local banks and financial institutions to build a portfolio of SME loans for an aggregate amount well above €750 million, along with those yet to signed in the first half of 2024.

These financial resources are intended to increase access to finance among small businesses and improve their resilience to ongoing economic distress, while creating conditions for business expansion, employment and innovation. In Bosnia and Herzegovina, this facility is expected to deploy a total of €102 million worth of loans available at favourable lending conditions to some 1 900 small businesses, while sustaining over 26 000 jobs.

EIF Chief Executive Marjut Falkstedt said: “By supporting small businesses in the Western Balkans, especially in the most underserved and fragile segments, these extensive financial resources will improve these businesses’ capacity to innovate and grow, at the same time contributing to further integration within the EU economy. By doing so, these substantial funds will provide additional impetus for the development of robust and competitive regional economies, as well as their advancement within the global value chains.”

In Bosnia and Herzegovina, EIF guarantees have unlocked around €235 million in total to date for around 1 000 small businesses, which has helped sustain some 62 000 jobs. 

Head of the Delegation of the European Union to Bosnia and Herzegovina and European Union Special Representative Johann Sattler said: “Micro, small and medium enterprises are the backbone of Bosnia and Herzegovina’s economy. I am therefore delighted that with EU assistance, SMEs in Bosnia and Herzegovina and the Western Balkans will have access to financing at more favourable conditions, stimulating entrepreneurship, jobs and growth. We particularly hope that this will encourage female entrepreneurship — with women representing two-thirds of the inactive labour force in Bosnia and Herzegovina, the guarantee fund should encourage new ideas by providing a safety net for loans”.

Background information

The European Investment Bank (EIB) Group is the long-term lending institution of the European Union owned by its Member States. It makes long-term finance available for sound investment in order to contribute towards EU policy goals.

The European Investment Fund (EIF) is part of the European Investment Bank Group. Its central mission is to support Europe's micro, small and medium-sized enterprises (SMEs) by helping them to access finance. The EIF designs and develops venture and growth capital, guarantees and microfinance instruments which specifically target this market segment. In this role, the EIF fosters EU objectives in support of innovation, research and development, entrepreneurship, growth and employment.