UniCredit has joined the COVID-19 support package made available by the European Investment Fund (EIF), which will allow it to offer SMEs and mid-caps in Central and Eastern Europe loans guaranteed by the EIF for 80% (increased from the previous 50%) with simplified access policies. Indeed, the applicability of the InnovFin Guarantee is now possible even for large mid-caps, expanding the range of eligible companies in addition to small and medium-sized enterprises (SMEs) and small mid-caps already covered by the guarantee. In order to further promote the adoption of digital technologies, the InnovFin Guarantee has also been extended to digital transformation financing.
The operation has the support of Horizon 2020, the European Union's framework program for research and innovation, and the European Fund for Strategic Investments (EFSI), the cornerstone of the Investment Plan for Europe. These new measures will allow Unicredit to provide extensive support to companies in Bosnia and Herzegovina, Bulgaria, Croatia, the Czech Republic, Hungary, Romania, Serbia, Slovakia and Slovenia.
“Through this initiative – commented Gianfranco Bisagni and Niccolò Ubertalli, Co-CEO Commercial Banking CEE Unicredit – we continue to offer support to businesses in order to manage liquidity problems caused by the COVID-19 emergency. This concrete step aims to guarantee companies the continuity of cash flow in these difficult and extraordinary circumstances, as well as support working capital. Unicredit is committed to concrete and incisive initiatives to support companies and provide full support to the real economy".
“We are ready – added the two managers – to do our part in the wide-ranging measures launched by the European institutions and governments and this agreement with the EIF allows us to guarantee entrepreneurs in Central and Eastern Europe the necessary support to deal with the consequences of this emergency, ensuring continuity in the production chain and laying the foundations for the recovery of their economies".
As of June 2020 Unicredit has 30 guarantee schemes in place in CEE countries by international financial institutions and local development banks to support the financing of SMEs and medium-sized companies for a total of 3,8 billion euros, of which 1,2 billion already used. The remaining €2,6 billion also includes new local guarantee schemes dedicated to COVID support for €1,2 billion, and the aforementioned InnovFin Guarantee with COVID package for €0,6 billion, with the aim of facilitating financing activities in the region in the next 2-3 years.
