The Slovak Republic and the European Investment Fund sign a Framework Agreement set to help small businesses
Date: 22/12/2008 The European Investment Fund, and the government of the Slovak Republic , represented by Deputy Prime Minister Dusan Caplovic and Minister of Finance Jan Pociatek, signed on 22 December 2008 a Framework Agreement for a holding fund under the JEREMIE initiative which will, via financial intermediaries, finance the creation, development and growth of small and medium-sized companies in the Slovak Republic . This holding fund will be operated through a special purpose vehicle, with European Investment Fund being a shareholder alongside SZRB, the state guarantee bank.The activities of the holding fund, to be carried out exclusively by the European Investment Fund, will include the development of new financial engineering structures and products, primarily in venture capital, micro-loans and guarantees, for the benefit of local SMEs (small and medium-sized enterprises) and micro-enterprises. This initiative is part of an overall government programme aimed at stimulating further growth in the economy, which will contribute to safeguarding the prospects for the SME sector in this challenging economic environment.
There will be four funding agreements to be signed by 31st March 2009, one with each of the four managing authorities responsible for one of the Operational Programmes from which contributions to the holding fund will be made, initially totalling EUR 121.2m.
The European Investment Fund will be opening an office in Bratislava to ensure a local presence and staffing for the carrying out of its tasks.
About EIF
EIF’s central mission is to support Europe’s small and medium-sized businesses (SMEs) by helping them to access finance. EIF designs and develops venture capital and guarantees instruments which specifically target this market segment. In this role, EIF fosters EU objectives in support of innovation, research and development, entrepreneurship, growth, and employment. The EIF total commitment to Private Equity funds amounted to over EUR 4.5bn at end August 2008. With investments in over 290 funds, the EIF is a leading player in European venture due to the scale and the scope of its investments, especially in high-tech and early-stage segments. The EIF commitment in guarantees totalled over EUR 11.6bn in some 190 operations at end August 2008, positioning it as a major European SME guarantees and securitisation actor and a leading micro-finance guarantor.
Since its activities began, the EIF has indirectly supported some 810,000 SMEs and has thus tremendously contributed to economic growth and development in Europe.
About JEREMIE
JEREMIE (Joint European Resources for Micro to Medium Enterprises) is a joint initiative launched by the European Commission (DG Regio), EIB and EIF to improve access to finance for SMEs in the EU within Structural Funds framework for the period 2007 - 2013. JEREMIE enables the EU Member States and Regions to put money from the structured funds into holding funds that can finance SMEs, start-ups and micro-enterprises in a flexible and innovative way. Holding funds will provide SMEs, through financial intermediaries, with a wide range of financing like equity, venture capital, guarantees and micro-loans, together with potential loans from EIB resources. The Holding Fund allows the structural fund money to “be used several times” and hence more SME’s can benefit from the EU money. Sustainable, tailor-made and revolving financial instruments, aiming to develop and foster the role of entrepreneurship within the EU are key elements of the Lisbon agenda and help the structural funding to deliver greater benefits to the market (leverage effect).
So far, Funding Agreements have been signed with Greece, Romania and Latvia for a total of EUR 380m.
For further information, please contact Patrice Liauzu, +352 42 66 88 243, or visit www.eif.org/jeremie