The European Investment Bank (EIB) and BAWAG P.S.K. signed an agreement under which EIB is lending EUR 100 million to Bank für Arbeit und Wirtschaft und Österreichische Postsparkasse A.G. (BAWAG P.S.K.) to finance small and medium-sized projects of BAWAG P.S.K.’s business customers:
- Using up to half of EIB funds BAWAG P.S.K. will deploy to support a wide range of projects implemented by Austrian SMEs (with fewer than 250 employees) and mid-cap companies (max 3.000 employees) especially in the areas industry, infrastructure and services, including tourism
- The residual amount of the loan amount will be used by BAWAG P.S.K. to support priority investments in the public infrastructure sector covering energy and environment, health and education and development of the knowledge based economy.
To improve the access of SMEs and mid-caps to medium and long-term funds on advantageous financial terms the EIB simplifies its procedures and broadens the scope of its financing by also covering intangible types of investment. In addition, BAWAG P.S.K. is increasing transparency by working towards a more effective transfer of the advantage of EIB funds to the final beneficiaries.
Mr Matthias Kollatz-Ahnen, EIB Vice-President responsible for lending in Austria, states: “The EIB intermediated loan to BAWAG P.S.K. helps to strengthen the sector of small and medium-sized and midcap companies, that was the major victim of the current crisis, and contribute to workplaces and investments in the aftermath of the crisis“.
Regina Prehofer, Managing Board Member and responsible for the Austrian commercial business says: “With this new EIB-loan BAWAG P.S.K. wants to enable access to loans on favourable terms for its SME business customers and support investments in intangible assets. The EIB-loans can be used in combination with regional, national or EU-subsidized fundings.”
The current loan is a continuation of the successful cooperation between the EIB and BAWAG P.S.K. Before, the EIB provided thirteen credit lines to this financial institution amounting to EUR 512 million supporting smaller investments in Austria.
Note to editors:
The EIB, the European Union’s long-term financing institution, finances economically viable investment projects that contribute towards the integration, balanced development and economic and social cohesion of the EU Member States.
The EIB increased its activities in Austria significantly during the last years (2007: EUR 1.07 billion, 2008: EUR 1.32 billion) as part of an answer to the financial crisis. Loan signatures in Austria amounted to a record level of EUR 1.93 billion in 2009. The EIB’s lending operations cover all economic sectors in Austria, ranging from infrastructure to manufacturing and services, including support for small and medium-sized companies through local financial institutions, health and education and the development of a knowledge-based economy.
BAWAG P.S.K. ranks among the five largest banks in Austria and is the leading retailbank for the middle-income market. BAWAG P.S.K. is a modern, service oriented one-stop financial institution with excellent market know-how, a wide service range for individual needs and innovative products, both for retail and commercial customers. We report a balance sheet total of 41.2 bn Euros and administer customer deposits of 22.7 bn Euros. With 150 BAWAG branches more than 1,100 Post offices and 400 Post Partners, BAWAG P.S.K. has the biggest centrally managed distribution network in Austria. 1.6 mn retail customers and 60,000 corporate customers trust in us. BAWAG P.S.K. is the first address for Austrian payment transactions. In total the group has approximately 5.000 employees.