EUR 170m for Slovak SMEs, following JEREMIE guarantee agreements signed with 3 banks

The European Investment Fund (EIF), together with Slovenský záručný a rozvojový fond s.r.o. (SZRF), have signed the first guarantee agreements with UniCredit Bank Slovakia a.s., Tatra banka and Slovenská záručná a rozvojová banka (SZRB) under the Joint European Resources for Micro to Medium Enterprises (JEREMIE) initiative, allowing the three banks to provide up to EUR 170 million of new loans to Slovak Small and Medium-sized Enterprises (SMEs).

Following these transactions under the JEREMIE initiative, SMEs in Slovakia can now benefit from investment loans and working capital offered by these three banks at preferential conditions. The banks will be providing loans over the course of the next two years, with the loan products targeting all regions except for Bratislava. Information on how to access loans guaranteed through the JEREMIE initiative will soon be available from the three respective banks.

Commenting on the new operations, EIF Chief Executive Richard Pelly said:”We are delighted to be signing our first guarantee agreements in Slovakia under the JEREMIE initiative. These new transactions will help to satisfy the strong demand for loans from local SMEs and will help to create jobs and growth for the Slovak economy at a crucial time. Negotiations are on-going with another bank in Slovakia and we hope to be able to sign a further agreement shortly. We also plan further lending support for Slovak SMEs in the form of a new instrument to be launched in the coming months”.

Deputy Prime Minister and Minister of Finance of the Slovak Republic, Peter Kažimír said: “The JEREMIE initiative is an important pro-growth measure and long-term sustainable project for the Slovak Republic to improve financing of SMEs, support of innovations and start-ups in Slovakia, financed from EU Structural Funds in programming period 2007 - 2013. We are looking forward to its successful implementation”.

Tomáš Malatinský, Minister of Economy in Slovakia said: “We are glad to support the JEREMIE Initiative in the Slovak Republic and thus assist SMEs to get better access to finance. Through this operation SMEs will benefit from better pricing and reduced collateral requirements, which will stimulate much needed investments for growth and job creation. We wish to bring even more support for SMEs on the market soon“

These first guarantee agreements in Slovakia result from a Call for expression of interest, which attracted a high level of interest from 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.

About JEREMIE

JEREMIE (Joint European Resources for Micro to Medium Enterprises) is a joint initiative launched by the European Commission (DG 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 in order to meet the objectives of the Lisbon agenda and help structural funds to deliver greater benefits to the market. At the level of the European Union, the EIF has currently signed 8 national and 5 regional Holding Fund agreements.

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

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 6.9bn at end 2012. 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. The EIF guarantees loan portfolio totalled over EUR 4.7bn in close to 255 operations at end 2012, positioning it as a major European SME guarantees actor and a leading micro-finance guarantor.

More information about EIF is available on www.eif.org.

About SZRF

Slovenský záručný a rozvojový fond, s.r.o. (“SZRF”) was set up in March 2009, within the framework of the implementation of the JEREMIE initiative in Slovakia, to be a local state-owned entity through which the EIF will perform the JEREMIE activities. The operations of the company, principally venture capital fund investments and guarantees on portfolios of SME loans, are carried out by EIF independently under a separate management agreement, including the contracting of selected financial intermediaries.

Slovenská záručná a rozvojová banka, a.s. (“SZRB”) and EIF are the shareholders of SZRF, with EIF’s participation being held on behalf of the Slovak government until its foreseen exit at the end of 2015. More information about SZRF and JEREMIE in Slovakia is available on www.szrf.sk

About Unicredit Bank Slovakia a. s.

UniCredit Bank Slovakia a. s. is the key Slovak banking market player, a universal bank providing complex services to all the segments. Not only individuals are its clients but also sole traders, mid corporations as well as global international, multinational and foreign companies, developers, agribusiness firms and financial institutions.  UniCredit Bank Slovakia a. s. is a member of UniCredit, one of Europe's leading commercial banks with strong roots in 22 European countries.  Our network, which is present in roughly 50 markets, includes about 9,400 branches and more than 157,000 employees as of 30 September 2012. In the CEE region, UniCredit operates the largest international banking network with nearly 3,800 branches.

The Group operates in the following countries: Austria, Azerbaijan, Bosnia and Herzegovina, Bulgaria, Croatia, the Czech Republic, Estonia, Germany, Italy, Kazakhstan, Kyrgyzstan, Latvia, Lithuania, Poland, Romania, Russia, Serbia, Slovakia, Slovenia, Turkey, Ukraine and Hungary.

About Tatra banka

Tatra banka was established in 1990 as the first private bank in Slovakia, taking up with traditions of the oldest financial institution in Slovakia – the original, pre-war Tatrabanka with its name, drive and ambition. It is currently a member of RBI and one of the most successful subsidiary companies of the Raiffeisen Banking Group in the Central and East European region. It is a modern universal bank offering a comprehensive range of banking services and solutions in the field of management of funds both for corporate and individual clients. Tatra banka is also an ultimate leader in the segment of private banking as to the quality and comprehensiveness of services, number of clients and volume of managed assets. With its network of 129 commercial premises it operates in all regions of Slovakia. Tatra banka is currently the third largest and most effective Slovak bank and maintains its long-term dominant position in the field of corporate lending, electronic banking, asset management, mortgage loans, payment cards or private banking.

About SZRB

Slovenská záručná a rozvojová banka, a.s. (SZRB) (Slovak Guarantee and Development Bank) was established in 1991. SZRB is a special financial institution owned by the Ministry of Finance of the Slovak Republic (MoF) with the mission to support and develop small and medium-sized businesses on the basis of partnership and cooperation with commercial banks and other institutions supporting this segment. The Bank applies financial instruments which help establish new business entities, contribute to their stabilization as well as to the further development of existing companies. An alliance between SZRB and the MoF enables SZRB to partially carry out, among other things, other goals of state economic policy such as financing of projects of municipalities and higher territorial units, as well as the much-needed renovation of apartment buildings.

More information about SZRB is available on www.szrb.sk

Press contacts:

• EIF:  David Yormesor, d.yormesor@eif.org,
• Ministry of Finance: Radko Kuruc, radko.kuruc@mfsr.sk
• UniCredit Bank Slovakia a. s.:  Zuzana Ďuďáková zuzana.dudakova@unicreditgroup.sk
• SZRB: Juraj Topolčány, juraj.topolcany@szrb.sk;  Miroslav Kuník, miroslav.kunik@szrb.sk
• Tatra banka: Marína Smolková, marina_smolkova@tatrabanka.sk