EIF and Belfius Bank have signed a guarantee agreement to support Small and Medium-sized Enterprises (SMEs) in Belgium. Thanks to this transaction under the Competitiveness and Innovation Programme (CIP), start-up companies in Belgium can now have easier access to finance while also benefiting from substantially reduced collateral requirements.

The CIP guarantee will cover the SME investment loans granted by Belfius Bank to start-ups and this transaction is expected to generate a new portfolio of loans worth up to EUR 450m over the next two years. 2,000 Belgian start-up companies are expected to benefit from this transaction, gaining access to loans of up to EUR 500,000.

Commenting on the deal, EIF Chief Executive Richard Pelly said: “I am delighted to be signing our first agreement under the CIP programme with Belfius Bank for the benefit of Belgian SMEs. Working with one of the major banks in Belgium will help entrepreneurs who need finance the most to start up and develop their businesses thanks to this deal under the CIP programme.”

Belfius Bank Vice-President, Mr. Marc Lauwers, said: “Belfius and the EIF concluded this joint-collaboration agreement as a means of offsetting the current situation, namely the recent drop in the number of business start-ups in Belgium. Today’s economic situation and the more difficult access to financing makes it extra difficult for Belgian entrepreneurs to get started in business. In view of the importance of SMEs for economic and, especially, employment-reasons, it is vital that these entrepreneurs are provided with the required financial support to survive the teeth-cutting years. By making these loans to start-ups available Belfius and the EIF have nailed their colours firmly to this mast.”

Notes to editors

About the 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 net commitments to private equity funds amounted to over EUR 6bn at end 2011. With investments in over 370 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 guarantees loan portfolio totalled over EUR4.4bn in close to 220 operations at end 2011, positioning it as a major European SME guarantees actor and a leading micro-finance guarantor.

About CIP

The Competitiveness and Innovation Framework Programme (CIP), which spans from 2007 to 2013, has been put in place to boost European productivity, innovation capacity and sustainable growth, whilst simultaneously addressing complementary environmental concerns.

Within the framework of the CIP, the European Investment Fund (EIF) has been allocated EUR 1.1bn to be split between venture capital – with the High Growth and Innovative SME Facility (GIF) - and guarantees – with the SME Guarantee Facility (SMEG).

About Belfius

Belfius Bank & Insurance is a local bank exercising its commercial activities in Belgium across three main areas: retail & commercial banking; the provision of financial services to the public sector; insurance. The bank collects savings deposits and investments via its distribution networks, reinjecting these funds back into society in the form of loans to individuals (especially as mortgages), the self-employed, SMEs, the professional sector, companies and, in particular, public and social institutions. The insurance company serves these very segments through a multi-channel approach.

Belfius Bank & Insurance is wholly owned by the Belgian state, via the Federal Participation and Investment Corporation (SFPI/FPIM). Its shares are not listed on the stock exchange.

Boosted by its 150 years’ experience in the public sector and 50 years in the "individual clients" segment, Belfius Bank & Insurance offers an outlook based on three undertakings:

Belfius Bank & Insurance seeks to be a locally anchored relationship bank and insurance company;
Belfius Bank & Insurance seeks to be a bank and insurance company that offers added value to society;
Belfius Bank & Insurance seeks to provide clear and transparent communication

Press contacts:

EIF: Mr. David Yormesor, e-mail: d.yormesor@eif.org, tel (+ 352) 42 66 88 346
Belfius : Moniek Delvou, tel : + 32 2 222 98 16 , e-mail : moniek.delvou@belfius.be