The European Investment Fund (EIF) and Erste Bank Croatia have agreed to unlock up to €58 million in new financing for Croatian small and medium-sized enterprises (SMEs), as detailed in an EIF press release. Under the deal signed in Zagreb, the EIF will expand existing guarantees by €29 million under the InvestEU Programme, enabling Erste Bank Croatia to introduce mini-bonds as an alternative financing tool for entrepreneurs. For many businesses, this opens a path beyond traditional bank loans toward more flexible, market-based funding.
Mini-bonds allow growing, innovative, or higher-risk companies to raise capital directly from the market in a simpler format than standard corporate bonds, without diluting ownership. EIB Vice-President Marko Primorac said the move strengthens Croatia’s SMEs and financial sector to fuel sustainable growth, innovation, and regional development. Erste Bank Croatia President Christoph Schoefboeck called mini-bonds a natural step for companies preparing for more sophisticated financing, especially those investing in innovation and eyeing capital markets.
The ten-year EIF–Erste partnership has already delivered multiple guarantee instruments that brought successful projects to life across Croatia. SMEs are the backbone of the Croatian economy, and in 2025 the EIB Group delivered €536 million in new financing to Croatia, more than half targeting SMEs and mid-caps for green transition, digitalization, and business expansion. This latest deal broadens the country’s financial ecosystem and gives entrepreneurs more ways to fund growth.