EIB earmarks €400 m in new financing to Czech SMEs, mid-caps

11 / 10 / 2023

By Marwa Nassar - -

The European Investment Bank (EIB) has signed an agreement with Česká spořitelna – the oldest and largest Czech bank – on allocating €400 million in new financing to Czech small and medium-sized enterprises (SMEs) and mid-caps.

The agreement is expected to help improve access to finance for local companies. Up to 50% will be used to finance Czech mid-caps, with the remainder devoted to SME lending.

The project is therefore also expected to have a significant impact on employment in the country by facilitating favorable lending for the real economy at a time of high interest rates and tight financial conditions.

In line with EIB priorities, some 80% of the newly available financing promotes EU Cohesion Policy by targeting less developed regions and transition regions, thus helping to reduce regional inequalities. In addition, at least 20% of the financing is earmarked for climate action projects to combat, mitigate or adapt to the effects of climate change.

“SMEs and mid-caps play an important role in the Czech economy, in terms of both value creation and employment. Still, these companies don’t always have access to the financing they need — a situation that was made worse by the pandemic and high inflation,” commented EIB Vice-President Lilyana Pavlova. “Česká spořitelna is a historical partner for the EIB in the country, and we are very happy to build on our partnership with them, especially since this will help make important financing available to cohesion regions.”

“Česká spořitelna has grown to become the largest provider of loans to companies in the Czech Republic. Not only do we offer robust financing, but we also provide companies with advisory services to boost their productivity, competitiveness and positive impact on sustainability,” said Pavel Kráčmar, Česká spořitelna Board member responsible for corporate banking. “EU Cohesion Policy delivers on the European Union’s priorities, especially the green and digital transition. Thanks to this cooperation with the EIB we will be able to finance even more projects in these strategic areas.”