European Investment Bank Provides 100 Million in Guarantees for Slovak Companies

Strategic Insights -

The European Investment Bank (EIB) has announced that it will provide 100 million in guarantees to UniCredit Bank Slovakia, enabling the bank to offer more affordable financing to Slovak companies. The funding will be used for working capital, additional liquidity, and ongoing and new investments, as well as expansion plans. This move aims to support the country's economic and social growth, particularly in the wake of the COVID-19 pandemic.

Key Takeaways:

  • The EIB will provide 100 million in guarantees to UniCredit Bank Slovakia through the European Guarantee Fund (EGF).
  • The funding will support Slovak companies in various sectors, including innovation, environment, and indirect SME support.
  • The EGF provides guarantees to national promotional banks, local banks, and other financial intermediaries to make more financing available for small and medium companies.
  • Slovakia is one of 22 EU member countries participating in the EGF, providing 75 million in guarantees.
  • The guarantees will cover losses that may occur in the EIB Group's operations, including the European Investment Fund.
  • UniCredit Bank will offer favorable financing totaling 200 million euros to help companies overcome the pandemic's impact.
  • The EIB's Vice-President stated that this operation will accelerate the recovery of Slovak companies, protect jobs, and contribute to the country's economic and social development.

Statistics:

  • 100 million: The amount of guarantees the EIB will provide to UniCredit Bank Slovakia.
  • 75 million: The amount of guarantees Slovakia has contributed to the EGF.
  • 200 billion: The total investment the EGF is expected to deliver for the EU economy's faster COVID-19 recovery.
  • 22: The number of EU member countries participating in the EGF.
  • 25 billion: The size of the EGF, set up by the EIB to help businesses recover from the pandemic.
  • 100 million euros: The value of UniCredit Bank's favorable financing offer to companies affected by the pandemic.

Sources:

  • "European Investment Bank (EIB) to provide 100 million in guarantees to UniCredit Bank Slovakia, enabling them to offer more affordable financing for Slovak companies" (Report)
  • "EIB-UniCredit risk-sharing operation stems from the European Guarantee Fund (EGF), the 25 billion fund set up by the EIB as a part of the EU package to help businesses recover from the pandemic, hire employees and grow" (Report)
  • "Slovakia joined the EGF to take part in a coordinated response to the impact of the coronavirus on the EU economies with which Slovakia is deeply interlinked" (Report)
  • "The guarantees from EGF-participating countries cover losses that may occur in the EGF operations of the EIB Group including the EIB and its specialised SME-financing arm, the European Investment Fund" (Report)