CDP and Banca Etica join forces with EU support to unlock €30 million for microfinance in the Western Balkans
A €15 million CDP financing, backed by an EU first-loss guarantee, will help expand access to finance for microentrepreneurs and small businesses across six Western Balkan countries through a total of €30 million in funding provided by Banca Etica
Sarajevo, 11 November 2026 – Cassa Depositi e Prestiti (CDP) and Banca Etica have signed a €15 million financing agreement under SAFE (Sustainable Access to Finance for Entrepreneurship), an initiative promoted by CDP with the support of the European Union through the Western Balkans Investment Framework (WBIF).
Approved by the European Union in 2023 as one of the flagship initiatives under the Economic and Investment Plan for the Western Balkans, SAFE is a regional programme designed to provide integrated support across the entire region.
Supported by a c. €5 million guarantee provided by CDP and fully counter-guaranteed by the European Union[1], the operation will mobilise a €30 million microfinance portfolio across Albania, Bosnia and Herzegovina, Kosovo, Montenegro, North Macedonia and Serbia.
The funding will be channelled through local microfinance institutions identified and selected by Banca Etica, expanding access to credit for microentrepreneurs and small businesses that often face difficulties accessing traditional banking services. Particular attention will be devoted to women-led and youth-led enterprises, fostering financial inclusion, job creation and local economic growth.
Through its matching €15 million contribution, Banca Etica will double the initiative's financing capacity, generating a leverage effect of 2x and increasing the resources available to the region's microfinance sector.
Alongside the financing, SAFE also provides investment grants and technical assistance to strengthen the operational capacity, ESG practices and long-term sustainability of participating microfinance institutions.
The operation reflects CDP's commitment as Italy's Financial Institution for International Development Cooperation to mobilise European resources alongside specialised financial partners in support of sustainable and inclusive growth. By strengthening access to finance for underserved entrepreneurs, the initiative contributes to the objectives of European Union assistance.
Carlo Rossotto, Director of Development Cooperation and International Institutional Relations of CDP, said: “Microfinance institutions play a critical role in reaching entrepreneurs that are often excluded from traditional financial channels. Through SAFE, we are combining European resources and specialised financial expertise to expand access to finance, support job creation and foster more inclusive and resilient economic growth across the Western Balkans”.
Federica Ielasi, Vice President of Banca Etica, said: “Banca Etica has been supporting projects in the Western Balkans – through its member NGOs – since its early days as a small financial cooperative. Over the last five years, we have provided 16 million euros in credit to the region, including through Cresud – a company within the Banca Etica Group – and local microfinance organizations. We aim to increase our impact on the international stage, and we are very pleased to be doing so in collaboration with the European Commission and Cassa Depositi e Prestiti. The joint initiative we are presenting here will provide new credit to thousands of individuals and small local businesses, thereby pursuing our shared goal of building paths toward peace and socioeconomic inclusion – elements we consider essential for developing concrete practices of coexistence among the peoples of the continent”.
Adebayo Babajide, Deputy Head of the Delegation of the European Union to Bosnia and Herzegovina, said: “Access to finance is essential for entrepreneurs and small businesses to grow and create jobs. Through the Western Balkans Investment Framework, the European Union is contributing €9.43 million to the SAFE programme, helping mobilise up to €30 million in financing for microentrepreneurs and small businesses across six Western Balkan partners. This support will help expand access to finance, particularly for businesses led by women and young people. We are pleased to see this initiative launched in Sarajevo. The EU remains committed to working with its financial partners to mobilise investment, remove barriers and ensure that no one is left behind on the Western Balkans’ path towards EU integration”.
S.E. Sarah Eti Castellani, Ambassador of Italy to Sarajevo, said: “This initiative represents a concrete example of the value of cooperation between Italy, European institutions and local partners in supporting the economic and social development of the Western Balkans. Expanding access to credit for micro and small enterprises, with particular attention to young people and women-led businesses, means investing in the potential of local communities, promoting new employment opportunities and strengthening the foundations for inclusive and sustainable growth. Initiatives of this kind also help support the countries of the region on their path towards European Union membership, fostering economic convergence and closer ties with the European market. We are particularly pleased that Bosnia and Herzegovina is among the beneficiary countries of this important programme”.
[1] A financial mechanism through which the European Union or its entities - such as the European Commission or the European Investment Fund (EIF) - assume the first portion of losses on a portfolio of loans or investments.