EIF signs guarantee deal with UniCredit to back innovative SMEs in CEE

"The agreement allows UniCredit to provide additional funding of 160 million euro for innovative companies through its banks in Bosnia and Herzegovina, Bulgaria, Croatia, the Czech Republic, Slovakia, Hungary, Romania and Serbia," UniCredit Bulbank said in a statement.

The banks in Bosnia and Serbia will benefit from the support of a guarantee provided by EIF and backed under Horizon 2020, the EU's Research and Innovation programme, while the guarantee agreements with the banks in Bulgaria, Croatia, the Czech Republic, Slovakia, Hungary and Romania will be backed by the Investment Plan for Europe.

"This umbrella SME guarantee agreement will be instrumental in helping countries in the Western Balkans and Eastern European regions to foster innovation and entrepreneurship. I am confident that UniCredit’s network of banks in these eight countries will target high-growth potential companies, which will be able to translate the additional financing received into growth and job creation," EIF chief executive Pier Gilibert said in the statement.

Companies developing products, processes or services that are innovative or focus on research and development as well as applicants, who in the last 24 months have registered at least one patent or have received an award for innovation from an European organization, are eligible for a loan under the programme.

Under the agreement, UniCredit Bulbank will be able to provide a total of 15 million euro at preferential interest rates and reduced guarantee requirements.

The maximum amount of a single loan under the scheme in Bulgaria will be 3.75 million euro, while the minimum is set at 25,000 euro.

The programme will have a duration of two years and can be extended by one year.

($=0.9364 euro)