- The EIB and Všeobecná úverová banka have signed a financing agreement to make new financing available to Slovak businesses and the public sector.
- Around 90% of the loan is expected to go to EU cohesion areas, a top priority for the EIB together with the fight against climate change.
- The €50 million loan agreement has clear potential to support at least €100 million in new investments in the Slovak economy.
The European Investment Bank (EIB) has signed a €50 million lending agreement with Všeobecná úverová banka (VÚB) intended to generate additional lending to Slovak small and medium businesses (SMEs), mid-caps, and public and private sector entities. The EIB loan is expected to be matched by VÚB and other funding providers so as to generate at least €100 million in new financing for small and medium-sized projects in Slovakia. Approximately 90% of the finance unlocked by the EIB is expected to benefit cohesion areas, helping to reduce regional disparities in line with the European Union's Cohesion Policy.
“VÚB has extensive experience in implementing EIB products through its network of branches in cohesion regions,” affirmed Zuzana Kaparová, Head of the Bank’s Bratislava office. “That’s why we are happy to once again build on our partnership to make relevant financing available for projects in Slovakia. Along with addressing climate change, Cohesion Policy is a top priority for the EIB, with 44% of our financing in 2022 going to cohesion regions. The two priorities complement each other, and cohesion regions received around half of the EIB’s total EU lending for climate action and environmental sustainability in 2022.”
At least half of the total new portfolio of lending is meant for local SMEs and mid-caps, with the remainder aimed at financing public sector entities and other eligible private entities. It is expected that at least 10% of the financing will support climate-relevant projects focused on energy efficiency in buildings and industrial facilities, as well as on sustainable mobility, including electric vehicles, buses and trains.
“This new agreement with the EIB, especially at a time of rising interest costs, is undoubtedly good news and a welcome opportunity to support SMEs, mid-cap companies and the public sector with a preferential interest rate from VÚB in the form of financing for our clients. The selected investment projects focus on economic, social and environmental development. Thank you very much, EIB, for your trust and cooperation,” stated Jozef Kausich, CEO of VÚB.
The part of the arrangement focusing on SMEs and mid-caps is expected to improve access to finance in this sector. Blending EIB funds loaned at attractive rates with VÚB's own resources will allow the intermediary to offer more favourable financing conditions (longer maturities and low, flexible rates) to final beneficiaries.
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.
Všeobecná úverová banka is a member of Intesa Sanpaolo banking group. VÚB has 125 retail branches and 33 corporate branches across Slovakia, as well as a branch in the Czech Republic.
