January 5 (BTA) - The European Investment Fund (EIF) will
 provide 700 million euro in guarantees to UniCredit, allowing
the lender to provide up to 1 billion euro of financing to small
 and medium enterprises (SMEs) in Bulgaria, Slovakia, Slovenia
and Croatia to accelerate the economic recovery from the
COVID-19 pandemic, EIF and UniCredit Bulbank said in a joint
statement.

The EIF guarantees stem from the European Guarantee Fund (EGF),
a 25 billion euro 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 much needed liquidity to
European SMEs. The breakdown of the guarantee agreement is as
follows: In Bulgaria (up to 185 million euro), Slovakia (up to
310 million euro), Slovenia (up to 80 million euro) and Croatia
(up to 325 million euro). 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.

The European Investment Fund is part of the European Investment
Bank Group

EIB Vice-President Lilyana Pavlova commented: "I am delighted
that under the European Guarantee Fund, the EIF is announcing a
new partnership with UniCredit Group to unlock up to 1 billion
euro of more accessible financing for SMEs in Bulgaria,
Slovakia, Slovenia and Croatia. The EIB Group stands ready to
partner with financial institutions and companies across Europe
to support the economic recovery from the COVID-19 pandemic."
   
Gianfranco Bisagni, Head of Central Europe and Teodora Petkova,
Head of Eastern Europe at UniCredit, added: "We are offering
continued support to European SMEs and mid-caps that play such a
 central role in our economies."

Tzvetanka Mintcheva, UniCredit Bulbank CEO and Chair of the
Management Board said: "UniCredit Bulbank and UniCredit Leasing
will provide a financial tool to Bugaria companies in order to
support recovery of the businessand the country's economy."
RY/PP


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