EIF signs first guarantee agreement in Poland under the CIP

The EIF and Bank BPH S.A. (BPH) have signed a guarantee agreement under the Competitiveness and Innovation Frame work Programme (CIP) helping to provide enhanced access to finance for Small and Medium sized enterprises (SMEs) in Poland. 

Businesses in Poland can now access over 700 million zlotys (150 million euros) of additional lending guaranteed under the CIP which will help to support new and existing SMEs.  

A new product - the aptly named Simplified Investment Loan - together with two existing products - the Auto Loan and the Investment Loan - will provide long term investments for Polish SMEs. These types of loan are particularly welcome in Poland given the current financial conditions as it now means that finance will be easier to access and the loans will be more readily available.  

Under the Multiannual Programme (MAP, CIP's predecessor) the EIF also enjoyed a positive working relationship with BPH. This new three year financing period signals the EIF's renewed commitment to creating, supporting and developing SMEs in Poland.

Background information:

The 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 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).

Under the SMEG, financial institutions are encouraged to enhance access to finance for SMEs.  The facility offers an excellent tool to allocate additional financing volumes for those SMEs that would not otherwise have access to resources and financial engineering instruments because of the increased lending risk entailed.  As such, The SMEG complements and broadens EIF's own product offering.

The EU CIP SMEG Facility gives the EIF the opportunity to play an essential role in supporting sustainable job creation and entrepreneurship in European SMEs. 

About BPH

BPH is a Polish universal Bank and member of the GE Capital Group. BPH specialises in developing innovative solutions for SMEs, in order to become "first choice" Bank for Polish entrepreneurs. The EIF Guarantee will enable BPH to offer SME loans for financing fixed assets on more attractive conditions.   

About EIF

The EIF central mission is to support Europe's 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, the EIF fosters EU objectives in support of innovation, research and development, entrepreneurship, growth, and employment. 

For further information, please contact David Yormesor, d.yormesor@eif.org