EIB Group and Česká spořitelna team up to support businesses across the Czech Republic
- Jul 18, 2019
The EIB, the EIF and Česká spořitelna (ČS) are channelling EUR 306m of new financing into small and medium-sized businesses. The agreement will help about 250 companies and support nearly 43,000 jobs across the country.
- EFSI-backed transaction to facilitate development of securitisation market
- EUR 306m (CZK 7.8bn) for an estimated 250 companies
- Nearly 43,000 jobs supported
The European Investment Bank, the European Investment Fund and Česká spořitelna (ČS) are channelling EUR 306m of new financing into small and medium-sized businesses. The agreement will help about 250 companies and support nearly 43,000 jobs across the country.
The deal, backed by the European Fund for Strategic Investments, includes a guarantee of EUR 76.5m (CZK 1.96bn) to cover possible losses on an existing portfolio of around EUR 1bn (CZK 26.1bn). The guarantee will allow Česká spořitelna to ramp up its lending. This new type of transaction will also help develop the securitisation market in the region.
“According to the latest EIB Investment Survey, 20% of smaller companies in the Czech Republic have suffered from underinvestment over the last three years,” said EIB Vice-President Vazil Hudák. “Thanks to this innovative transaction, the EIB and ČS will help some of these companies, especially those with riskier business ideas. This will strengthen the competitiveness of the Czech economy and contribute to economic growth and job creation.”
“Thanks to its long-standing successful cooperation with the European Investment Bank Group, Česká spořitelna can provide loans with an advantageous interest rate. This loan is designed to target SMEs and MidCaps, offering financing for investments as well as working capital on very simple terms. This product corresponds precisely to our strategic objective – to help Czech companies and entrepreneurs grow,” said Pavel Kráčmar, the member of Česká spořitelna’s Board of Directors responsible for corporate banking and financial markets.
Věra Jourová, Commissioner for Justice, Consumers and Gender Equality said: "I very much welcome this agreement, which will create opportunities for Czech entrepreneurs and open up access to the finance they need to generate better-paying jobs and innovate. This is an example of Europe’s strong added-value – by pulling resources together it can offer practical benefits for citizens.”
The deal will enable the EIB to support more small and medium-sized companies in the Czech Republic. It will also strengthen the cooperation between the EIB and ČS. Since 2002, the EU bank has provided ČS with loans and guarantees totalling EUR 1.45bn. These will help companies in the Czech Republic get better access to the long-term financing they need to thrive and grow.