Small businesses set to benefit from EBRD loan

Plans for a €20 million credit line to Erste Bank Croatia have been announced by the European Bank for Reconstruction and Development (EBRD). The main bulk of the loan is to be used for micro, small and medium-sized enterprises (MSMEs); although they play a major part in the economy of the country, access to finance can still be hard and a major stumbling block that often leads to business closures. These MSMEs also play a major role in Croatia’s employment and the lack of finance for the businesses has been recognised as a problem that needs addressing.

The credit line will also be used to promote energy efficiency investments in the residential sector. As well as this, another €10 million will be made available to finance sub-loans to borrowers under the Croatia Residential Sustainable Energy Financing Facility (CroSEFF).