A further EUR 20m for Slovak SMEs, following JEREMIE agreement with OTP Banka Slovensko

The European Investment Fund (EIF), together with Slovenský záručný a rozvojový fond s.r.o. (SZRF), has signed a portfolio risk-sharing agreement with OTP Banka Slovensko under the Joint European Resources for Micro to Medium Enterprises (JEREMIE) initiative, allowing the bank to provide up to EUR 20 million of new loans to Slovak Small and Medium-sized Enterprises (SMEs).

This transaction adds an additional market player to the five banks already implementing JEREMIE instruments in Slovakia, and allows SMEs in Slovakia to benefit from investment and working capital loans offered by OTP Banka Slovensko at preferential conditions. OTP Banka Slovensko will be providing loans over the course of the next 15 months, with the loan products targeting all regions except for Bratislava.

Commenting on the new operation, EIF Deputy Director and Head of Regional Business Development Hubert Cottogni said: “I am pleased to be signing this JEREMIE transaction in Slovakia. In addition to the deals signed with the five other Slovak banks, this new transaction will further improve access to a total of over EUR 280m of debt finance for local SMEs and thus contribute to the creation of new jobs and growth of the Slovak economy”.

“The support of economic growth, employment and investment is among the government’s key responsibilities. Appropriate forms of such assistance include a combination of available public resources and private resources. The JEREMIE scheme is a well-designed programme, designed to help to improve access to finance for SMEs and thus to deliver capital and support for job creation in different regions outside the capital Bratislava,” Slovakia’s deputy Finance Minister Vazil Hudak said.

The State Secretary of the Ministry of Economy of the Slovak Republic Miroslav Obert said: “I am pleased to welcome another bank that will implement the portfolio risk-sharing product on the market with the aim to support SMEs in Slovakia and thus contribute to job creation and growth of the Slovak economy. At this stage, full attention must be paid to the successful deployment of the instruments down to the SME beneficiary level.”

CEO and BoD Chair of OTP Banka Slovensko Ms. Zita Zemková commented on the newly signed guarantee agreement with EIF and SZRF: “We are glad that OTP Banka Slovakia again brings further benefits for the SME clients via JEREMIE. In cooperation with the EIF we will be able to provide a unique opportunity for the small and medium entrepreneurs to access loans at significantly more convenient conditions.”

“Through this instrument OTP Banka Slovakia aims to provide opportunities to benefit from the EU funds for the development of business of the companies, which don´t use this possibility so far“, commented Peter Chovanec, Corporate business Development Director in OTP Banka Slovakia.

This agreement results from Calls for expression of interest, targeted at banks operating in Slovakia. The Call was part of the implementation in Slovakia of the JEREMIE initiative, financed by the European Regional Development Fund within the framework of the Operational Programme “Competitiveness and Economic Growth” for 2007 - 2013. Slovak SMEs are already benefiting from finance provided by five banks implementing the guarantee and risk-sharing instruments under the JEREMIE initiative, as well as from two fund managers investing equity.

About JEREMIE

JEREMIE (Joint European Resources for Micro to Medium Enterprises) is a joint initiative launched by the European Commission (Directorate General Regional Policy) and the European Investment Bank Group to improve access to finance for SMEs in the EU within the Structural Funds framework for the period 2007 - 2013. JEREMIE enables the EU Member States and Regions to put money from the Structural Funds and also national resources into holding funds that can finance SMEs in a flexible and innovative way. The new initiative aims at developing and fostering the role of entrepreneurship within the EU.

To date, at EU level, EIF manages a total of 14 JEREMIE Holding Funds, of which 7 at national level and 7 at regional level.

In Slovakia, the JEREMIE Holding Fund is financed from the European Regional Development Fund within the framework of the Operational Programmes “Competitiveness and Economic Growth”, “Research & Development” and “Bratislava Region”, which together have contributed EUR 100m.

About EIF

The The European Investment Fund's (EIF) 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. EIF’s total net commitments to private equity funds amounted to over EUR 7.9bn at end 2013. With investments in over 435 funds, 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. EIF’s guarantees loan portfolio totalled over EUR 5.6bn in over 300 operations at end 2013, positioning it as a major European SME guarantees actor and a leading micro-finance guarantor.

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 61 branches in Slovakia.

Press contacts:

- EIF:  David Yormesor, d.yormesor@eif.org

- Ministry of Finance: Radko Kuruc, radko.kuruc@mfsr.sk