EIB Group support for the Czech Republic exceeds EUR 1bn in 2017
- EIB Group activity volumes in the Czech Republic almost doubled in 2017 compared to 2016
- The EIB has provided EUR 20bn in signed loans in the Czech Republic over the last 25 years
- In future years the Bank will focus more on support for the public sector and direct support for corporates
The European Investment Bank (EIB) Group provided EUR 1.16bn in new loans, guarantees and equity in the Czech Republic in 2017. The EIB granted EUR 977m in loans, and the activities of the European Investment Fund (EIF – part of the EIB Group) resulted in EUR 184m of equity, guarantee and microfinance operations.
The potential investment triggered by the EIB Group in the Czech Republic thanks to EFSI transactions totalled EUR 2.52bn in 2017. In this regard, the EIF signed four EFSI transactions with an aggregate EIF contribution of EUR 170m.
Over the last 25 years, the EIB has provided EUR 20bn of loans in the Czech Republic for projects designed to reduce disparities in regional development, strengthen economic competitiveness and improve people’s living standards.
“In the Czech Republic we are on a steady upward trajectory in terms of EIB Group activity volumes, which nearly doubled year-on-year and exceeded EUR 1bn in 2017”, commented EIB Vice-President Vazil Hudák, responsible for the Bank’s operations in Central European countries. “But it’s not just quantity, but also quality that counts. And here, I was pleased to see that the EU bank supported many smaller projects promoted by SMEs, mid-caps and municipalities. In the future we envisage renewing our cooperation with the country and expanding our support for the Czech corporate sector.”
Support for innovative industries
In 2017 the EIB provided EUR 36m to finance automotive producer Benteler’s research, development and innovation (RDI) and technology deployment activities regarding the development of optimised lightweight and safer chassis components – made of a wide variety of metal and non-metal materials and combinations – and engine parts with extensive downsizing potential. This is part of a project that is also supporting RDI activities in Austria, Germany and Hungary.
Loans for SMEs and mid-caps
The EIB concluded 11 intermediated loan contracts amounting to EUR 925m with Czech financing institutions in 2017. These institutions are using the EIB funds to finance projects carried out by SMEs and municipalities in the fields of local infrastructure, environmental protection, energy, R&D and innovation, and services, including tourism. EIB loans have thus improved the access of SMEs to medium and long-term funds on advantageous financial terms. The estimated aggregate number of SME and mid-cap projects to be financed by EIB loans in the Czech Republic in 2017 is around 15 000.
The EIF the committed EUR 184.5m in the Czech Republic in 2017 in one equity, one microfinance and four guarantee operations, aimed at raising EUR 443.1m.