- The EIB backing will allow Slovenská sporiteľňa to generate new loans on favourable terms, primarily benefiting less developed and transition regions.
- Around 80% of the funds should be made available in EU cohesion areas, highlighting the EIB’s commitment to equitable growth.
- Nearly a third is earmarked for mid-caps, with the rest destined for local SMEs.
Slovenská sporiteľňa and the European Investment Bank (EIB) will provide €200 million in new financing to Slovak small and medium businesses (SMEs) and mid-caps. The agreement announced today should help address local market failures by improving access to finance for these companies.
Up to 30% of the funds will be used to finance mid-caps in Slovakia, with the remainder devoted to lending for SMEs. The operation is also expected to have a positive impact on employment in the country, by directing much-needed funding to the real economy at a time of high interest rates and tight financial conditions.
“Slovak SMEs and mid-caps don’t always have access to the financing they need to grow and be successful. Clearly, the pandemic and high inflation have not improved that situation in recent times,” explained Zuzana Kaparová, Head of the EIB’s Bratislava office. “We are very happy to build on our partnership with Slovenská sporiteľňa to make relevant financing available to those companies that need it, especially since it will largely go to help cohesion regions.”
In line with the EIB’s priority to support EU Cohesion Policy, some 80% of the new financing will benefit companies in less developed regions and transition regions, highlighting the Bank’s commitment to equitable growth and the convergence of living standards both between and within Member States. Finally, a minimum of 20% of the financing is earmarked for climate action projects, meant to support investment that will either mitigate climate change or adapt communities to its effects. The EIB has committed to investing at least 50% of its yearly financing volumes to climate action and environmental sustainability projects.
“In these uncertain times affected by high inflation, our bank is doing its part to foster the economic stability of businesses and employment in Slovakia. This agreement with the EIB will help improve access to finance and boost investments, sustainability and employment. It also shows that we are fully committed to being a strong partner for businesses and entrepreneurs,” added Norbert Hovančák, Member of the Board of Directors responsible for corporate banking and financial markets.
Background information
In Slovakia, where the EIB opened a local office in 2015, EIB projects totalling over €1.2 billion have been signed in the last five years.
Slovenská sporiteľňa is the oldest savings bank in Slovakia, with roots dating back to the 19th century. It began as “affiliate branches of Die Erste oesterreichische Spar-Casse” established in Bratislava (Pressburg), Trnava (Tyrnau), Banská Bystrica (Neusohl) and Levoča (Leutschau) as early as 1824. Later, individual savings banks were founded in Bratislava (Pressburg) in 1841, and in Trnava (Tyrnau) and Košice (Kaschau) in 1844. Then in 1923, Mestská sporiteľňa was founded in Bratislava. A new era began when the bank became part of Československá štátna sporiteľňa (Czechoslovak State Savings Bank) upon its establishment in 1953. And from 1969, it started operating as a separate entity — Slovenská štátna sporiteľňa, š. p. ú. (Slovak State Savings Bank, state monetary institution).
1989 marked the start of the liberalisation of the financial sector, bringing new competitors to the market. In 1990 Slovenská sporiteľňa obtained a universal bank licence and extended its service offering to include the institutional and business segments. The securities activity of Slovenská sporiteľňa on money and capital markets began when they were set up in 1991. Just three years later, the bank was transformed into a joint stock company and assumed the commercial name “Slovenská sporiteľňa, akciová spoločnosť.”
In 2001, an agreement was concluded between the Ministry of Finance of the Slovak Republic and Erste Bank about the sale of the majority of its shares, making Slovenská sporiteľňa part of the strong Erste Bank der oesterreichischen Sparkassen AG financial group.