EIF and UniCredit provide EUR 1 bln to Balkan SMEs

The European Investment Fund (EIF) will provide EUR 700 million in guarantees to UniCredit to accelerate the economic recovery from the COVID-19 pandemic. The EIF guarantees stem from the European Guarantee Fund (EGF), a EUR 25 billion guarantee facility set up by the EIB Group in 2020 to boost the post-COVID-19 recovery of the European economy, safeguard jobs, and provide liquidity to European SMEs.

The breakdown of the guarantee agreement is as follows: In Bulgaria (up to EUR 185 million), Slovakia (up to EUR 310 million), Slovenia (up to EUR 80 million) and Croatia (up to EUR 325 million). The remaining portfolio volume will be allocated across the four countries in accordance with the observed demand.

The UniCredit Group members in the above four countries, including banks and leasing institutions, will offer loans and other financial products to SMEs under more favourable terms including reduced interest rates, longer grace periods, lower collateral requirements or extended maturities. The loans will be available to SMEs operating in the sectors of economy hardest hit by the pandemic and accelerate the recovery of national economies.