January 10 (SeeNews) - The European Investment Fund (EIF) has signed a guarantee agreement with Societe Generale Expressbank, the Bulgarian unit of French banking group Societe Generale, aiming to provide easier access to financing of small and medium-sized enterprises (SMEs) in the country, the bank said on Tuesday.
“Access to financing remains crucial, especially for small enterprises. We’re glad we can offer our clients good development opportunities, as well as to promote innovation and entrepreneurial spirit,” Zdenek Metelak, executive officer and director of retail and network division of Societe Generale Expressbank, said in a press release.
SMEs will be able to benefit from loans for investments and working capital, which are to be used to finance projects for expanding the company’s business or for implementation of innovative ideas.
The agreement is part of the SME Initiative - a joint programme blending support from the European Commission, EIB Group and EU member states with a view to stimulating SME financing by providing partial risk cover for SME loan portfolios originated by financial entities. Alongside European structural and investment funds contributed by member states, the SME Initiative is co-funded through Horizon 2020 resources as well as benefiting from EIB Group resources.
The European Investment Fund (EIF) is part of the European Investment Bank group. Its central mission is to support Europe's micro, small and medium-sized businesses by helping them to access finance. The EIB, the EU’s long-term lending institution, is owned by the EU member states.