Guarantee Facility

405m €
available financing to SMEs
216m €
deployed as at December 2018
39,418
jobs supported

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 the 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.

 

Financial intermediaries under the WB EDIF GF Serbia were selected on the basis of a Call for Expression of interest process which closed on 15.04.2019. Please find more information about the Facility and the contacts of the selected Financial intermediaries here: EIF_Serbia_brochure_1902[Serbian]  

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 AlbaniaProCredit in Bosnia & HerzegovinaProCredit in KosovoUniCredit in SerbiaCKB in MontenegroRaiffeisen 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 MacedoniaProCredit SerbiaProCredit KosovoRaiffeisen AlbaniaCKB 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 up to 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

News & Events

EVENT

WB EDIF at the Poznan Summit 2019

The Western Balkans Summit Poznan 2019 took place on July 3-5, where the Ministers of foreign affairs, internal affairs and economy convened on July 4 and on the day after the heads of states and governments discussed key issues concerning Western Balkans. The European Commissioner for Enlargement, Johannes Hahn opened the Berlin Process for Western Balkan with the participation of the Forum for Business and Civil Society.

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EVENT

Poznań Summit 2019

The Western Balkans Summit Poznań 2019 will take place on July 3-5 at the Poznań International Fair. Ministers of foreign affairs, internal affairs, and economy will convene on July 4. A Leaders’ Summit will take place on July 5 – heads of states and governments of partners to the Berlin Process will discuss key issues concerning Western Balkans.

WB EDIF will be presented during this Summit, among other with the presence of a stand, promoting the various instruments and programmes it has to offer.

More information about the Summit can be found here.

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Case studies

CASE STUDY

Kosovo* Case Study

A native of bablak in southern Kosovo*, Ejup Shumolli is the owner of a factory that produces high quality vinyl windows and doors. His products are unique because he uses Inoutic, a German material which is well known for its superb thermal insulation and moisture protection.

Find out how Ejup received financing for his company through WB EDIF’s Guarantee Facility

WBEDIF Succes Stories – Shumolli

Discover other means of support

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