The European Investment Fund and OTP Banka Slovensko have signed a guarantee agreement aimed at supporting micro-enterprises and young entrepreneurs in Slovakia.

This transaction was signed under the guarantee part of the European Progress Microfinance Facility (Progress Microfinance), initiated and funded by the European Commission and managed by the European Investment Fund. OTP Banka Slovensko is the first institution in Slovakia to receive support under this facility.

Following this agreement, OTP Banka Slovensko will provide a total amount of up to EUR 10 million to micro-entrepreneurs across Slovakia particularly, with a strong focus on supporting entrepreneurs excluded from access to traditional banking services including young entrepreneurs. This agreement will provide easier access to finance to around 600 local micro-enterprises through granting microloans to start-ups, small and micro-enterprises, handicraft businesses, self-employed entrepreneurs.

Commenting on the agreement, Regional Business Development Director Hubert Cottogni said: “I am delighted to be signing the first Progress Microfinance agreement in Slovakia with OTP Banka Slovensko.At a time of tightening credit conditions and given the need for improving access to finance for businesses, this agreement will bring valuable benefits to micro-entrepreneurs across the country”.

The transaction will allow OTP Banka Slovensko to continue further develop its current lending activity to small and micro-enterprises in Slovakia.

Ing. Zita Zemková, CEO and BoD Chair of OTP Banka Slovensko said: “We are glad that, in cooperation with the European Investment Fund, we as the only bank in Slovakia can bring tangible benefits for the segment of micro-enterprises via the Progress facility. Based on the signed contract, we will be able to support micro-entrepreneurs and young entrepreneurs who have difficult access to credit financing. The transaction enables OTP Banka to fulfill its strategy in the field of support for small enterprises in Slovakia. This is one of the ways OTP Banka Slovensko contributes to the growth of Slovak economy“.

Micro-enterprises wishing to apply for a micro-loan under Progress Microfinance can directly contact OTP Banka Slovensko‘s branches in Slovakia.

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 205 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 direct financing to micro-entrepreneurs or individuals.

OTP Banka Slovensko marks the 50th transaction signed under Progress Microfinance since its inception in 2010. To date, commitments of over EUR 130 million under Progress Microfinance have been signed to benefit EU micro-borrowers. Countries where agreements have been signed to date include Austria, Belgium, Bulgaria, Cyprus, France, Greece, Ireland, Italy, Lithuania, Poland, Portugal, Romania, Slovenia, Spain, The Netherlands and the UK. For further information about this initiative please visit: www.ec.europa.eu/epmf

About EIF

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.

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 62 branches in Slovakia.

Contact:

EIF: David Yormesor, d.yormesor@eif.org
OTP Banka Slovensko: Katarina Gajdosikova, gajdosikova_k@otpbanka.sk, Phone: +421 903 805 105, www.otpbanka.sk