(BRIEF) The European Bank for Reconstruction and Development (EBRD) launches a new risk-sharing framework with Privredna banka Zagreb d. d. (PBZ), providing up to €75 million in pledges of percentage of component banks’ exposure to local corporations in Croatia. PBZ, a component of the Intesa Sanpaolo Group, becomes the first beneficiary, with the aim of offering financing opportunities to giant corporations and small and medium-sized enterprises (SMEs). This initiative, which is part of the EBRD’s Small Business Initiative, underlines the commitment to support the growth of the private sector in Croatia. Dinko Lucić, Chairman of the Board of Directors of PBZ, highlights the flexibility of the program and its perspective to offer capital relief, addressing the difficulties faced by private companies in accessing favorable financing.
(PRESS RELEASE) LONDON, March 27, 2024 — /EuropaWire/ — The European Bank for Reconstruction and Development (EBRD) is launching a new risk-sharing framework for Croatian banks, with Privedna banka Zagreb d. d. (PBZ), which is a component of the Intesa Sanpaolo Group, being the first to benefit from it.
The framework is designed to allow the EBRD to maintain a percentage of partner banks’ exposure to local companies, whether large corporations or small and medium-sized enterprises (SMEs), through unfunded risk participation. The EBRD will guarantee up to 65 per cent of the individual shares. Subloan provided through PBZ to eligible customers. The Bank’s commitment under this agreement may amount to up to €75 million.
The Risk Sharing Framework is one of the three main financing frameworks of the EBRD’s Small Business Initiative, a programme committed to supporting and building local personal businesses. The EBRD offers partner banks risk-sharing mechanisms, whether funded or unfinanced, through co-financing and guaranteeing the spouse bank’s loans to eligible companies.
Mark Davis, EBRD Regional Director for Central Europe, said: “We are delighted to partner with PBZ to expand financing opportunities for developing companies. The EBRD’s Threat Sharing Mechanism will enable PBZ to manage capital and threat concentration and facilitate credit expansion for genuine economy advantages.
Dinko Lucić, Chairman of the Board of Directors of PBZ, said: “PBZ is a strong and long-standing partner of the EBRD through various programmes. We are very happy to be the first bank in Croatia to participate in this new risk. exchange framework. Recognising the need for a more flexible and tailored approach, with this programme we aim at our ability to take risks and offload capital relief, thereby addressing the demanding situations faced by private corporations, large corporations and SMEs when obtaining favourable financing. »
The Intesa Sanpaolo Group is one of the largest banking teams in Europe. PBZ is the second largest banking and monetary organization in Croatia in terms of assets, with a market share of around 20% across various operating segments. It is a market leader in many areas, such as cards and new technologies, and frequently develops state-of-the-art products and facilities for individuals, companies and SMEs.
PBZ is also a center of excellence in many banking spaces within the International Bank Branches Division of the Intesa Sanpaolo Group. Therefore, it has a regional banking center following the acquisition of the majority stakes of the Intesa Sanpaolo banks in Bosnia and Herzegovina and Slovenia.
Strengthening the competitiveness of the personnel sector and supporting local SMEs through indirect financing, adding risk-sharing mechanisms, are among the EBRD’s top priorities in Croatia. One of the country’s largest institutional investors, the EBRD has invested more than €4. 7 billion in 248 projects. in Croatia (adding more than €300 million in 2023), largely in the personal sector.
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SOURCE: EBRD
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