The European Investment Fund (EIF) and the UniCredit Bank Group have signed an agreement on the extension of the InnovFin SME Guarantee Facility, which provides access to finance of 50 billion for innovative small and medium-sized enterprises and small medium-sized enterprises, Eastern European countries, “the European Commission said on Monday.
As it is said, the new agreement allows UniCredit Group to offer additional EUR 340 million funding to innovative companies in Bulgaria, Croatia, the Czech Republic, Slovakia, Hungary, Romania and non-EU Bosnia via its banks and leasing companies -Hercegovina and Serbia.
The agreement reflects the European Union’s commitment to launch as soon as possible specific initiatives aimed at accelerating lending and guaranteeing transactions that can stimulate job creation and growth in the EU and its neighborhood, “he added.
The EU InnovFin SME Guarantee Facility provides guarantees and counter-guarantees for loans between EUR 25 000 and EUR 7,5 million to help SMEs access to innovative small and medium-sized enterprises and small, medium-sized companies with up to 499 employees. The guarantee framework is managed by the EIF and made available through financial intermediaries – banks and other financial institutions in EU Member States and Associated Countries. By means of the guarantee framework, the EIF provides financial intermediaries with a guarantee of their proportionate losses on the loans involved.