The European Investment Bank (EIB) and SKB banka d.d. Ljubljana have signed a contract for the provision of EUR 100 million in long-term funds to be delivered in two tranches of EUR 50 million. The funds will be used to combat youth unemployment by financing SME and midcap company projects in Slovenia.

Both financial institutions are confident in the Slovenian economy’s ability to generate high-quality investment projects and, with this injection of fresh resources, they aim to contribute to economic development and growth with a focus on investments promoted by young people or designed to create or secure jobs for the country’s youth.

Mr László Baranyay, EIB Vice-President with responsibility for lending in Slovenia, commented: “The EIB loan is designed to help improve the situation of the young generation in Slovenia, which is faced with high unemployment, and provide it with more optimistic prospects for the future. Together with SKB Banka – a well-established EIB partner financing institution – the EIB is ensuring that the benefits of granting loans on favourable terms are passed on to eligible beneficiaries to facilitate projects that will help to reduce unemployment affecting particularly young people.”

Ms Vojka Ravbar, SKB Deputy CEO, said: “The position of young people on the Slovenian labour market is very difficult. They often have minimum work experience and their unemployment rate is permanently high. Improving access to long-term finance for SMEs and midcap companies is crucial for the further development of Slovenia’s economy as this sector is the main driver of economic growth, innovation, employment and social inclusion in all European Union countries, including Slovenia.

SKB Group, a member of the Société Générale Group, has cooperated with the European Investment Bank (EIB) in the field of financing SMEs, midcap companies and municipalities since autumn 2009 when SKB obtained the first tranche of EIB funds amounting to EUR 75 million. The second contract amounting to EUR 75 million was signed in November 2012. With these funds SKB Bank and SKB Leasing have in the past five years financed more than 1 300 investment projects in Slovenia. 66% of these funds were used to finance projects by SMEs, 26% went to midcap companies' projects and 8% helped finance public sector projects in the fields of energy efficiency and environmental protection.

It should be noted that 42% of these funds were used to finance production-oriented companies and for 33% for transportation, warehousing and commerce. A large portion of these funds have financed scientific and technical development projects.

Funds amounting to EUR 150 million received from the EIB since 2009 were intended for investment projects by SMEs, midcap companies and municipalities in all Slovenian regions.