- The EIB Group invested €1.19 billion in 2021 to boost regional development, the recovery of SMEs and mid-caps from the effects of COVID-19, a reliable and efficient energy supply, and climate action.
- The EIB invested €935 million in seven transactions supporting the public, private and banking sectors. The EIF, the second part of the EIB Group, provided €255.5 million in equity, guarantees and inclusive finance.
- The EIB Group supported a faster recovery of Czech economy from the effects of COVID-19 and boosted the country’s pandemic response in 2021 with €371.1 million, bringing total COVID-19-related support provided since the beginning of the pandemic to €904.4 million.
The European Investment Bank Group, consisting of the European Investment Bank (EIB) and European Investment Fund (EIF), invested €1.19 billion in the Czech Republic in 2021, boosting regional development, accelerating the recovery of small and medium enterprises (SMEs) and mid-caps, and supporting the stability and efficiency of the energy supply and climate action. The EIB lent €935 million through seven operations in the public, private and banking sectors, while the EIF provided an additional €255.5 million in four equity, guarantee and inclusive finance operations.
EIB Group activities in the Czech Republic in 2021 unlocked €371.1 million for a faster recovery of the national economy from the effects of COVID-19, bringing total COVID-19-related EIB support provided to the country since the beginning of the pandemic to €904.4 million. This support included operations such as €50 million lent to Komercni banka by the EIB, and €210 million in guarantees issued by the EIF. Both operations unlocked new sources of financing for Czech SMEs and mid-caps, enabling them to finance their liquidity needs, create and retain jobs, and maintain investments.
EIB Vice-President Lilyana Pavlova, who is in charge of operations in Czech Republic, said: “The volume of operations in the country testifies to our commitment to remain a reliable partner of Czech Republic even in the most difficult of circumstances. In 2021, the EIB Group responded to the most urgent and strategic needs of the public, private and banking sectors, displaying versatility and agility to deliver functional solutions to all challenges. Together we invested in a reliable power supply and unlocked new sources of financing for SMEs and mid-caps, while improving regional infrastructure and accelerating climate action. Our activities helped protect jobs and income for Czechs, and I am particularly proud of the around €900 million we have contributed towards COVID-19 recovery in the country. Faced with the Russian aggression in Ukraine, we will remain open to the needs of the Czech Republic and plan to work to increase economic and social resilience in cooperation with the public and private sector alike. I would like to thank our partners, especially the government, for the opportunity to make the Czech Republic stronger.”
Minister of Finance in the Government of the Czech Republic Zbyněk Stanjura said: "Currently, in connection with the war in Ukraine and the need to ensure the strategic energy security of the Czech Republic, we must reduce our dependence on oil and natural gas imports. And it is for these investments that the European Investment Bank could play an important role. I really appreciate its activities in the Czech economy and I hope that it will continue to be a strong and reliable partner for us.”
Support for SMEs, climate action, faster recovery from the effects of COVID-19, efficient and reliable energy supply
The EIB invested in seven operations in the country — three with the public sector, two with banks and one with Czech corporates. These investments include €191 million provided to Národní rozvojová banka (formerly CMZRB) for the long-term financing of urban, regional and rural development projects in the country. The EU bank also provided an additional €142 million to CEPS to improve reliability and modernise the electricity distribution network across the Czech Republic — this investment will increase the resilience of the Czech economy to major crises such as the coronavirus pandemic. A further €400 million was provided to Cista Energie Zitrka (CEZ) to expand and reinforce its power supply network.
In the banking sector, the EIB worked with Société Générale Equipment Finance (€80 million) and Komercni banka (€50 million) to unlock two new sources of long-term, more affordable financing for Czech companies. Both credit lines support the competitiveness and faster recovery of SMEs and mid-caps from the effects of the coronavirus pandemic, while funding for SG Equipment Finance also focuses on climate action financing.
EIF invests in development of biomedical industry and innovation-based competitiveness of Czech economy
The EIF provided €25 million to support efficient commercialisation of scientific research projects in biomedicine, a rapidly growing sector of the global economy. The EIF investment in the I&I Biotech Fund 1 will allow the Prague-based tech-transfer fund to invest in companies that emerge after successful biomedical research projects are completed in universities and research institutes (so-called spin-off companies) in the Czech Republic and Slovakia. The EIF will further accelerate the modernisation of the Czech economy and boost scientific research in the country to ensure long-term competitiveness.
The EIF provided an additional €20 million in equity to Genesis Private Equity Fund. A further €210 million from the EIF reached UniCredit Bank Czech Republic in the form of guarantees for SMEs and mid-caps, bringing total EIF investment in the country to €255 million.
EIB Advisory Services help Czech Republic improve energy efficiency and attract additional EU funds
In 2021, the EIB Advisory Services continued to provide valuable advisory and capacity-building support to the Government of the Czech Republic and country’s public and private sector. They took on eight new assignments and completed another eight, with 20 active assignments in the country. The EIB Advisory Services help promoters in Czech Republic to develop projects in areas such as climate and environment, energy efficiency, infrastructure and sustainable urban development.
Valuable support for project development from the EIB Advisory Hub, JASPERS and ELENA in 2021
The majority of the ten assignments the Joint Assistance to Support Projects in European Regions (JASPERS) currently has ongoing in the Czech Republic support the development of a project pipeline, principally in the rail and road sectors. JASPERS also supports relevant Czech authorities in the preparation and screening of strategies and the development of sector policies to ensure the best projects for EU co-financing are identified.
JASPERS is also working with the Government of the Czech Republic and the Ministry of Regional Development to identify projects that could benefit from the EU Just Transition Fund developed under the EU Green Deal.
European Local Energy Assistance (ELENA) is working on three assignments in the Czech Republic to attract €126 million in EU grants for energy efficiency measures; ELENA provided €7.6 million in grants to develop the three projects. At the same time, the EIB Advisory Hub supported the European Commission’s Digital Innovation and Scale-up Initiative (DISC) by undertaking a market study to assess the level of digitalisation in the country.
