The European Investment Fund (EIF) and OTP Banka Slovensko, have signed a guarantee agreement aimed at supporting micro-enterprises in Slovakia under the EU Programme for Employment and Social Innovation (EaSI).

This new EaSI guarantee agreement with OTP Banka Slovensko, will cover a loan portfolio of EUR 10 million for around 600 Slovakian micro-borrowers. Slovakian micro-entrepreneurs can benefit from attractive conditions including no collateral requirements for the micro-loans. The EaSI Guarantee scheme was launched in June 2015 and is funded by the European Commission and managed by the European Investment Fund.

Marianne Thyssen, Commissioner for Employment, Social Affairs, Skills and Labour Mobility, said: ”Thanks to our EaSI programme, around 600 micro-entrepreneurs in Slovakia will be able to access preferential loans worth 10 million euro. They will benefit from tailored mentoring and training. We are convinced that EaSI microfinance support has a strong role to play in our fight against exclusion through the creation of jobs, in particular for the most vulnerable people on the labour market.”

EIF Deputy Chief Executive, Roger Havenith said: “Over the next three years around 600 micro-borrowers are expected to benefit from this first microfinance agreement in Slovakia under the EaSI programme. Thanks to the guarantee cover under EaSi, OTP Banka Slovensko will be able to continue offering loans at further improved conditions to larger group of disadvantaged micro-borrowers.”

Zita Zemkova, CEO and BoD Chair of OTP Banka Slovensko, said: “We are glad that the cooperation with the European Investment Fund continues this year. Thanks to this cooperation we are able to support small businesses or entrepreneurs, for whom the traditional forms of financing are almost inaccessible. The EU guarantee enables OTP Banka to fulfil its strategy of supporting small enterprises in Slovakia. This is one of several ways in which OTP Banka Slovensko contributes to the growth of the Slovak economy.”

Micro-enterprises wishing to apply for a micro-loan under EaSI in Slovakia can do so directly by contacting OTP Banka Slovensko’s branches in Slovakia.

EIF will not provide direct financial support to enterprises but will implement the facility through local financial intermediaries, such as microfinance, social finance and guarantee institutions, as well as banks active across the EU-28 and additional countries that are participating in the EaSI programme. These intermediaries will deal with interested parties directly to provide support under the EaSI Guarantee.

About the Programme for Employment and Social Innovation

The European Commission’s Programme for Employment and Social Innovation ("EaSI") aims at supporting the EU's objective of high level employment, adequate social protection, fighting against social exclusion and poverty and improving working conditions. The EaSI Guarantee scheme was launched in June 2015 and is funded by the European Commission and managed by the European Investment Fund.

It provides support to financial intermediaries that offer microloans to entrepreneurs or finance to social enterprises. The objective is to increase access to microfinance for vulnerable groups who want to set up or develop their business and micro-enterprises, through notably loans of up to EUR 25 000. In addition, for the first time, the European Commission is helping social enterprises through investments of up to EUR 500 000. The microfinance and social entrepreneurship support is currently being implemented through the EaSI Guarantee, which enables financial intermediaries to reach out to micro-entrepreneurs and social enterprises that would not have been able to gain finance otherwise due to risk considerations. The European Commission has selected EIF to implement the EaSI Guarantee.

Furthermore, the Commission is reinforcing the social dimension of the EFSI for both microfinance and social entrepreneurship. Overall, the total amount of support to these areas is expected to increase (from EUR 193 million under the EaSI programme) to about EUR 1 billion, mobilising some EUR 3 billion in additional investment.

About the European Investment Fund

The European Investment Fund (EIF) is part of the European Investment Bank group. Its central mission is to support Europe's micro, small and medium-sized businesses (SMEs) by helping them to access finance. EIF designs and develops venture and growth capital, guarantees and microfinance 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.

For further information on EU microfinance and social entrepreneurship support please refer to:

EaSI Programme

EU support to social entrepreneurship

About OTP Banka Slovensko

OTP Banka Slovensko is part of the financial OTP Group with its presence in the Slovak market since 2002. It is a universal bank serving retail, SME and corporate customers in 60 branches in Slovakia.

Press contacts:

EIF: David Yormesor
Tel.: +352 42 66 88 346, E-mail: d.yormesor@eif.org

OTP Banka Slovensko, a. s.: Peter Ohrajter
Tel.: +421 903 555 496, E-mail: ohrajter@otpbanka.sk

EU Commission: Sara Soumillion
Tel.: +32 22967094

HIGHLIGHTS

EaSI Financial Instruments