March 26 (SeeNews) - The European Bank for Reconstruction and Development (EBRD) said on Tuesday it is extending a risk-sharing facility of up to 75 million euro ($81 million) to Croatian bank PBZ, part of the Intesa Sanpaolo Group, under a new risk-sharing framework for Croatian banks.
The framework is designed to allow the EBRD to share partner banks’ exposure to local enterprises, including large companies or small and medium-sized enterprises (SMEs), through an unfunded risk participation, EBRD said in a press release.
The EBRD will guarantee up to 65% of each individual sub-loan provided by PBZ to eligible clients.
“We are pleased to partner with PBZ to expand financing opportunities for growing companies. The EBRD’s risk-participation mechanism will enable PBZ to manage capital and risk concentration and facilitate credit growth for the benefit of the real economy,” Mark Davis, EBRD regional director for central Europe, said.
PBZ is the second-largest bank and financial group in Croatia by assets, with a market share of around 20% in various operating segments. It became a regional banking hub following the acquisition of the majority stakes of Intesa Sanpaolo banks in Bosnia and Herzegovina and Slovenia.
"We are delighted to be the first bank in Croatia to participate in this new risk-sharing framework," Dinko Lucic, president of the management board of PBZ said. "Recognising the need for a more flexible and customised approach, with this programme, we aim to enhance our risk-taking capacity and obtain capital relief, thereby responding to the challenges that private companies, both large enterprises and SMEs, face in obtaining favourable financing," he added.
Strengthening private-sector competitiveness and supporting local SMEs through indirect financing, including risk-sharing facilities, are among the EBRD’s key priorities in Croatia.
One of the largest institutional investors in the Adriatic country, the EBRD has invested more than 4.7 billion euro in 248 projects in Croatia – over 300 million euro of it in 2023 – largely in the private sector.
($ = 0.921 euro)