Czech Republic: EIB teams up with KB to battle youth unemployment, climate change
30 March 2017
The European Investment Bank (EIB) is lending EUR 100m to Komerční Banka for projects implemented by small and medium-sized businesses supporting youth employment and climate action.
Some 85% of the loan will be allocated under the Jobs for Youth initiative to SMEs and midcaps employing people under 30, offering vocational training or cooperating with educational establishments.
The rest will go towards financing energy efficiency and renewable energy investments associated with building rehabilitation undertaken by SMEs and midcaps.
EIB Vice-President Vazil Hudák, responsible for lending activities in Central Europe, stated: “The EIB is again joining forces with Komerční Banka in an effort to provide a significant contribution to SMEs and midcaps – the drivers of the economy. This time, most of our funds will help increase the employment rate of young people, who frequently face a difficult perspective on the labor market.”
Under the Jobs for Youth (JfY) initiative, the EU bank has provided EUR 150m in the Czech Republic since 2015 to fight youth unemployment.
With the current transaction, the EIB is continuing its successful cooperation with Komerční Banka dating back to 2005. So far, the EU bank has provided this well-established financial intermediary with seven loans amounting to EUR 550m to improve the access of SMEs and midcap companies in the Czech Republic to long term-finance provided under favourable terms.
The EIB has renewed its cooperation with Komerční Banka (KB) and has signed a new loan of EUR 30 million under the “Jobs for Youth” Initiative. This loan will continue to improve the access of SMEs and midcap companies to long-term financing and improve the conditions for tackling youth unemployment.
The EIB Group today inaugurated its office in Prague in a ceremony attended by the First Deputy Prime Minister and Minister of Finance of the Czech Republic, Andrej Babiš, EU Commissioner Věra Jourová and representatives from the Czech business community and public sector, thus establishing a local presence in the Czech Republic. The Head of the EIB Office in Prague is Mrs. Hana Kaloudová.