site.btaEIF and UniCredit to Provide EUR 1Bln for SMEs in Bulgaria, Slovakia, Slovenia and Croatia

January 5 (BTA) - The European Investment Fund (EIF) will provide 700 million euro in guarantees to UniCredit, allowing the lender to provide up to 1 billion euro of financing to small and medium enterprises (SMEs) in Bulgaria, Slovakia, Slovenia and Croatia to accelerate the economic recovery from the COVID-19 pandemic, EIF and UniCredit Bulbank said in a joint statement.

The EIF guarantees stem from the European Guarantee Fund (EGF), a 25 billion euro guarantee facility set up by the EIB Group in 2020 to boost the post-COVID-19 recovery of the European economy, safeguard jobs, and provide much needed liquidity to European SMEs. The breakdown of the guarantee agreement is as follows: In Bulgaria (up to 185 million euro), Slovakia (up to 310 million euro), Slovenia (up to 80 million euro) and Croatia (up to 325 million euro). The remaining portfolio volume will be allocated across the four countries in accordance with the observed demand.

The UniCredit Group members in the above four countries, including banks and leasing institutions, will offer loans and other financial products to SMEs under more favourable terms including reduced interest rates, longer grace periods, lower collateral requirements or extended maturities. The loans will be available to SMEs operating in the sectors of economy hardest hit by the pandemic and accelerate the recovery of national economies.

The European Investment Fund is part of the European Investment Bank Group.

EIB Vice-President Lilyana Pavlova commented: "I am delighted that under the European Guarantee Fund, the EIF is announcing a new partnership with UniCredit Group to unlock up to 1 billion euro of more accessible financing for SMEs in Bulgaria, Slovakia, Slovenia and Croatia. The EIB Group stands ready to partner with financial institutions and companies across Europe to support the economic recovery from the COVID-19 pandemic."

Gianfranco Bisagni, Head of Central Europe and Teodora Petkova, Head of Eastern Europe at UniCredit, added: "We are offering continued support to European SMEs and mid-caps that play such a central role in our economies."

Tzvetanka Mintcheva, UniCredit Bulbank CEO and Chair of the Management Board said: "UniCredit Bulbank and UniCredit Leasing will provide a financial tool to Bulgaria companies in order to support recovery of the business and the country's economy."
RY/PP//