What is WB EDIF’s Guarantee Facility?
The WB EDIF Guarantee Facility is managed by the EIF and provides guarantees and counter-guarantees to financial intermediaries in the Western Balkans, supporting SMEs with growth potential.
The WBEDIF Guarantee Facility was first launched in 2013 whereby high demand in the market led to a quick and full allocation of the resources available and a close of the Call for Expression of Interest in 2014.
Following the successful implementation of the WB EDIF GF, the WB EDIF GF II was signed between the EIF and the European Commission in December 2015. The corresponding second open Call for Expression of Interest went live in 2016 and was also fully allocated, leading to a close of the call in 2017.
As an evolution under this facility, new funds for a Serbia-specific Guarantee Facility were made available during 2017 and 5 financial intermediaries have been selected in an open call for expression of interest for financial intermediaries operating in Serbia.
Key facts and figures
For SMEs with growth potential in the Western Balkans in need of a loan, covering financing for investment and working capital
SMEs can obtain a loan of up to EUR 500.000
provided via financial intermediaries which are selected through a Call for Expression of Interest
EIF covers part of the risk incurred by the intermediary
Across all past and current editions of the Guarantee Facility, namely I, II and Serbia, EIF expects to generate an overall loan volume of over EUR 300 million
EU for Serbia - Financing for SMEs
In 2018 EIF launched the very first national Guarantee Facility under WB EDIF. In collaboration with the EU and the Ministry of Economy, the “EU for Serbia – Financing for SMEs” instrument is specifically tailored to the needs of SMEs in the Republic of Serbia and notably follows recommendations from the EIB’s ex ante analysis into financing gaps for access to finance for SMEs in the country.
“EU for Serbia – Financing for SMEs” will provide guarantees to eligible Financial Intermediaries established and operating in Serbia to encourage them to build up new portfolios of SME transactions and thereby improving access to finance to SMEs in Serbia.
Guarantee Facility Agreements signed to date
Under the first allocation of funding the European Investment Fund signed a total of 6 First Loss Portfolio Guarantee (FLPG) Agreements with : • ProCredit in Albania • ProCredit in Bosnia & Herzegovina • ProCredit in Kosovo • UniCredit in Serbia • CKB in Montenegro • Raiffeisen in Croatia These agreements have made a total of over EUR 118m available to SMEs in these countries, allowing them to benefit from reduced collateral requirements for new loans for investment and/or working capital.
Under the second allocation of funding the European Investent Fund signed a total of 5 First Loss Portfolio (FLPG) Agreements with : • ProCredit Macedonia • ProCredit Serbia • ProCredit Kosovo • Raiffeisen Albania • CKB Montenegro These agreements have made a total of EUR 107m available to SMEs in these countries, allowing them to benefit from reduced collateral requirements for new loans for investment and/or working capital.
Under the Guarantee Facility for Serbia allocation of funding the European Investment Fund signed a total of 5 First Loss Portfolio Guarantee (FLPG) Agreements with : • Banca Intesa • Komercijalna banka • Procredit • Raiffeisen •UniCredit. These agreements have made a total of over EUR 180m available to SMEs in Serbia, allowing them to benefit from lower cost of borrowing and reduction of collateral requirements.
As an SME, how do I get a loan via the Guarantee Facility?
WB EDIF does not provide financing directly to SMEs, but works with a range of financial intermediaries in the region. Please address these (abovementioned) financial intermediaries directly in case you would like to obtain further information about your options for loan financing.
Did you know that WB EDIF also offers technical support services to help develop your business idea? Discover more on our dedicated page for entrepreneurs here