News from 29-07-2015

Investment Plan for Europe: EIF and BGK sign first COSME agreement in Europe to benefit Polish businesses


The European Investment Fund (EIF) and Bank Gospodarstwa Krajowego (BGK) have signed the first COSME transaction benefitting from the support of the European Fund for Strategic Investments (EFSI) through which the Investment Plan for Europe is being deployed by the European Commission and the EIB Group.

The agreement will provide BGK with a counter-guarantee allowing the organisation to support PLN 1,000 million (ca. EUR 250 million) of loans to SMEs in Poland over the next two years. The loans will be provided without hard collateral thanks to a 80% guarantee which in turn is backed by a counter-guarantee from the EIF, provided under the COSME programme with financial backing from the Commission. The agreement will make it possible for BGK to launch a new guarantee product and to support additional financing without requiring hard collateral (e.g. mortgage) at favourable conditions to approximately 5,000 SMEs.

Speaking at the signature ceremony in Warsaw, EIF Deputy Chief Executive, Marjut Santoni said: “I am pleased to be signing the first EFSI SME guarantee agreement under the COSME programme with BGK. EFSI will allow us to increase our support for local companies and help entrepreneurs to start-up and develop their businesses. I am convinced that working with BGK – our long-term partner – will support thousands of Polish enterprises with limited access to finance due to lack of collateral to grow their business and create jobs”.

BGK President, Dariusz Kacprzyk said: "Agreement with EIF is the effect of implementing BGK strategy in the scope of supporting SME sector in Poland.  COSME shall supplement the existing guarantee offer of BGK which in two years has been used by more than 86 000 small and medium companies. Due to this agreement BGK shall offer to entrepreneurs attractive guarantees for the revolving or investment loans. We treat the agreement with EIF as the beginning of long-term co-operation in the scope of guarantee activity.”

This is the first COSME transaction signed thanks to EFSI support. This deal reflects the EIB Group’s commitment to respond swiftly to calls from Member States, the European Commission and the European Parliament for a rapid launch of concrete initiatives under EFSI, accelerating lending and guaranteeing transactions capable of boosting jobs and growth in the EU

Source: EIF