The European Investment Fund (EIF) and GE Money Bank have signed the first CIP loan guarantee agreement in the Czech Republic to support Small and Medium-sized Enterprises (SMEs).

Thanks to this transaction under the Competitiveness and Innovation Programme (CIP), companies in the Czech Republic can now have easier access to finance while also benefiting from larger loan amounts and substantially reduced collateral requirements.

This transaction will allow GE Money Bank to substantially increase its lending volumes to businesses and will help to generate a new portfolio of loans worth up to CZK 4 bn (EUR 160m) over the next three years. 1,430 Czech companies are expected to benefit from this transaction, gaining access to loans of up to CZK 10m (EUR 407,000). The CIP guarantee will cover the SME investment loans granted by GE Money Bank.

Speaking at the signature ceremony in Brno, EIF Structured Finance Manager Olivier Edelman said: “I am delighted to be signing our first agreement under the CIP programme in the Czech Republic with GE Money Bank for the benefit of SMEs. Allowing GE Money to increase its lending will help entrepreneurs in the Czech Republic to develop their businesses thanks to this deal under the CIP programme.”

“We greatly appreciate the cooperation with EIF, and we believe the investment loan provided under the CIP called "EU Investice”, will help the growth of small and medium businesses,” said Jiri Baca, Member of the Board of GE Money Bank, a.s. "We are a strong bank with healthy liquidity and high capital adequacy, which allows us to be a financing partner to small and medium businesses even under the current economic conditions. Our high level of business activity in this segment has been positively reflected in attained results." added Baca.

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 EUR 7.6bn in close to 220 operations at end 2011, positioning it as a major European SME guarantees actor and a leading micro-finance guarantor.

About GE Money Bank

GE Money Bank is a universal bank with the third largest distribution network in the Czech Republic consisting of 260 branches and 698 ATMs. Our services are aimed at retail clients and small and medium enterprises. In 2012, our Internet Banking was voted the best financial product on the market for the fourth time in a row by the Czech public. An expert panel voted our Debt Consolidation as the winner of its category in the Golden Crown competition for the third consecutive time. GE Money Bank has CZK 32 billion in equity and consolidated capital adequacy of 19.8%, which is one of the highest on the market.

GE Money Bank is part of the General Electric (GE) Group. The GE Group is the third largest corporation in the world, regularly ranking as one of the most admired and innovative companies in the world. GE was founded by Thomas Alva Edison. The corporation unites companies in the fields of industry and finance, taking on the toughest challenges in the world today. Its business activities stretch from manufacturing aviation engines to power generation, from financial services to medical imaging technology. GE operates in more than 100 countries worldwide, employing approximately 300 thousand people. For more information visit: www.ge.com.

About CIP

The Competitiveness and Innovation 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).

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Press contacts:

EIF: Mr. David Yormesor, Communication officer, e-mail: d.yormesor@eif.org, tel (+ 352) 42 66 88 346
GE Money Bank: Pavel Zúbek, mobil: +420 725 420 107, tel.: +420 224 442 120, e-mail: pavel.zubek@ge.com