The European Commission and the European Bank for Reconstruction and Development (EBRD) have signed a new guarantee agreement of up to €76.75 million ($ 89.5 million) aimed at expanding access to finance for businesses and supporting the development of greener and more inclusive global value chains.
Backed by the European Fund for Sustainable Development Plus (EFSD+) and aligned with the EU’s Global Gateway strategy, the guarantee is designed to improve financing conditions for small and medium-sized enterprises (SMEs) and mid-sized companies across the Western Balkans, the Eastern Neighbourhood, North Africa and the Middle East, Türkiye, Central Asia and Mongolia. The support will prioritise companies whose projects meet Environmental, Social and Governance (ESG) criteria, with the objective of strengthening competitiveness, supporting job creation and promoting sustainable growth in local economies.
Under the agreement, the EBRD will work with local partner banks to channel funding through two main instruments. The Supply Chain Solutions Framework will provide short-term financing to suppliers working with large buyers, while the Risk Sharing Framework will support loans and guarantees for capital expenditure, working capital, acquisitions and business expansion.
EU Commissioner for Enlargement Marta Kos said the initiative would support countries on the path to EU membership by encouraging investments in clean energy and sustainable practices. “Protecting the environment and citizens’ wellbeing is a core part of becoming an EU member,” she said.
EU Commissioner for the Mediterranean Dubravka Šuica said the agreement would help ensure that small businesses in partner countries have better access to capital, adding that the initiative aligns with the objectives of the Pact for the Mediterranean to deliver broader benefits to local communities.
Zsuzsanna Hargitai, managing director for SME Finance and Development at the EBRD, said improving access to finance for companies committed to ESG standards would strengthen competitiveness and resilience, while generating wider benefits across supply chains and local labour markets.
The guarantee forms part of the EU’s Global Gateway strategy, which seeks to mobilise up to €300 billion in public and private investment between 2021 and 2027 to support sustainable infrastructure, connectivity and development in partner countries. EFSD+, established in 2021, is a central financial instrument of the strategy, providing guarantees and grants to crowd in investment through international financial institutions.
