EUR 170m for Slovak SMEs, following JEREMIE guarantee agreements signed with 3 banks

The EIF, together with SZRF, have signed the first guarantee agreements with UniCredit Bank Slovakia a.s., Tatra banka and Slovenská záručná a rozvojová banka (SZRB) under the JEREMIE initiative, allowing the three banks to provide up to EUR 170 million of new loans to SMEs.

The Deputy Prime Minister of Slovakia, Peter Kažimír and the Minister of Economy, Tomáš Malatinský both attended the signature ceremony.

Following these transactions under the JEREMIE initiative, SMEs in Slovakia can now benefit from investment loans and working capital offered by these three banks at preferential conditions. The banks will be providing loans over the course of the next two years, with the loan products targeting all regions in Slovakia except for Bratislava.

For further information please read the press release, and for companies wishing to access these loans, please contact the participating banks directly.

Portfolio Guarantees

With the guarantee instrument, the so-called First Loss Portfolio Guarantee (FLPG), banks should be able to decrease their price and collateral requirements, thereby improving lending conditions and access to finance for SMEs, which is still one of the main aching points for Slovak SMEs, both in terms of collateral as well as pricing.

Eligible SMEs are defined in accordance with the SME definition of the European Commission (main conditions being maximum of 250 full-time equivalent employees, maximum yearly turnover of EUR 50m and maximum balance sheet total of EUR 43m). The financial intermediary will apply its standard credit assessment, with the benefit of being able to offer more attractive lending terms (in terms of price and/or collateral).

The FLPG State Aid Scheme can be downloaded here or found in the Commercial Gazette no. 154/2011.
Appendix no. 1 related to the State Aid Scheme can be found here.
Appendix no. 2 related to the State Aid Scheme can be found here.
Appendix no. 3 related to the State Aid Scheme can be found here

Call for Expression of Interest for First Loss Portfolio Guarantee - CALL CLOSED ON 28 OCTOBER 2011