The EIF and Erste Bank der österreichischen Sparkassen AG have signed two guarantee agreements aimed at supporting micro-businesses and start-ups in Austria. These transactions were signed under the European Progress Microfinance Facility (Progress Microfinance), funded by the European Commission and managed by the EIF, being the 22^nd and 23^rd signatures and the first two agreements in Austria under this facility.

Thanks to Progress Microfinance, Erste Bank will be able to increase its current micro-lending activity to start-ups under the micro-credit programme of the Federal Ministry of Labour, Social Affairs and Consumer Protection across Austria. In addition, micro-businesses who are advised by Erste Bank will also benefit from the guarantee agreement by being able to obtain micro-loans below EUR 25,000. In total, the two agreements will enable Erste Bank to provide up to an additional EUR 4.0 million of loan finance over the next two years.

Commenting on the transaction, Richard Pelly, EIF`s Chief Executive, said: “We are pleased to be signing our first two agreements under Progress Microfinance in Austria with Erste Bank. I am convinced that our agreements will help people with an economically viable business idea and an entrepreneurial profile but without access to the traditional banking system to start-up and grow their enterprises at this crucial time for the European economy.”

“Our job as a bank is to support Austria’s economy, especially in times like these because it is ultimately businesses that create jobs and growth. Under this EU initiative, we are the first bank in Austria to help micro and small businesses realize their ideas quickly,” said Andreas Treichl, CEO of Erste Group Bank AG about the cooperation with the EIF.

Micro-enterprises wishing to apply for a micro-loan under Progress Microfinance can contact Erste Bank and Sparkassen branches in Austria. Start-Ups can turn to one of the GründerCenters (specialised start-up centers of Erste Bank and Sparkassen, www.go-gruendercenter.net) directly or access the following web site: www.dermikrokredit.at.

About the European Progress Microfinance Facility

The European Progress Microfinance Facility (Progress Microfinance) provides guarantees and funded instruments to microfinance intermediaries. The initiative is established with EUR 203 million of funding from the European Commission and the European Investment Bank. Progress Microfinance aims to increase access to finance for micro-entrepreneurs, including the self-employed. It has a particular focus on, but is not restricted to, groups with limited access to the conventional credit market. Examples include female entrepreneurs, young entrepreneurs, entrepreneurs belonging to a minority group, entrepreneurs with a disability, sole traders etc. Loans less than EUR 25,000 are made available through selected intermediaries participating in the facility. Progress Microfinance does not provide financing or guarantees to micro-entrepreneurs or individuals directly.

For further information about this initiative please visit: www.ec.europa.eu/epmf

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 totaled over EUR 4.4bn in close to 220 operations at end 2011, positioning it as a major European SME guarantees actor and a leading micro-finance guarantor.

About Erste Bank

Erste Bank und Sparkasse is the largest provider of financial services in Austria. Around 14,000 staff attend to more than 3 million customers at over 1,000 branches and 182 banking service points. Its market share in Austria is around 30%

Erste Group is the leading financial services provider in Central and Eastern Europe. Around 50,000 employees serve 17 million clients in 3,000 branches in 8 countries (Austria, Czech Republic, Slovakia, Romania, Hungary, Croatia, Serbia, Ukraine). As of 30 June 2012 Erste Group has reached EUR 215.2 billion in total assets, an operating result of EUR 1,751.3 million and a cost-income-ratio of 51.9%.

Press contacts:

EIF
Susanne Gutjahr, Head of Communication, s.gutjahr@eif.org, Tel. +352 2485 81487

Erste Group Bank AG

Michaela Riediger, Press Department Erste Bank Oesterreich, michaela.riediger@erstegroup.com, Tel. +43 50100 13723

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