Slovakia: EIB and Slovenská sporiteľňa to support Slovak SMEs & Mid-Caps with €200 million in new financing

• European Investment Bank backing will allow Slovenská sporiteľňa to generate new loans on favorable terms agreement will mostly benefit less developed and transition regions.
• About 80% of the funds is expected to be made available in EU cohesion areas, highlighting EIB's commitment to equitable growth.
• Nearly one third of the financing is earmarked for Mid-Caps, with the rest destined for local small and medium-sized enterprises.

Slovenská sporiteľňa and the European Investment Bank (EIB) will make available €200 million in new financing to Slovak SMEs and Mid-Caps. The agreement announced today is expected to help address local market failures by improving access to finance for local companies.

A maximum of 30% will be used to finance Slovak Mid-Caps, with the remainder dedicated to lending for small and medium-sized companies. The operation is also expected to have a positive impact on employment in the country, by directing much-needed funding to the real economy at a time of high rates and tight financial conditions.

"Slovak SMEs and Mid-Caps don't always have access to the financing they need to grow and be successful. Clearly, the pandemic and high inflation have not improved that situation in recent times." commented Zuzana Kaparová, Head of the EIB's Bratislava office. "We are very happy to build on our partnership with Slovenská sporiteľňa to make relevant financing available to those companies that need it, especially since this will help make available relevant financing to cohesion regions."

In line with EIB priorities in terms of supporting EU Cohesion policy, some 80% of the total new financing will benefit companies in less developed regions and transition regions, highlighting the Bank's commitment to equitable growth and the convergence of living standards both between and within member states. Finally, a minimum of 20% of the financing is earmarked for climate action projects, meant to support investment that will either mitigate, or adapt to the effects of climate change. The EIB has committed to investing at least 50% of its yearly volume to climate action and environmental sustainability projects.

"In these uncertain times affected by high inflation, our bank is doing its part to foster the economic stability of businesses and employment in Slovakia. This agreement with the EIB will help improve access to finance and boost investments, sustainability and employment; it also shows that we are fully committed to being a strong partner for businesses and entrepreneurs." adds Norbert Hovančák, Member of the Board of Directors responsible for corporate banking and financial markets.

Background information

In Slovakia, where the EIB opened a local office in 2015, over €1,2 billion worth of EIB projects has been signed in the last five years.

Slovenská sporiteľňa oldest savings bank in Slovakia, with roots traced back to the 19th centurySo-called "affiliate branches of Die Erste oesterreichische Spar-Casse" were established in Bratislava (Pressburg), Trnava (Tyrnau), Banská Bystrica (Neusohl) and Levoča (Leutschau) from as early as 1824. Individual savings banks were founded in Bratislava (Pressburg) in 1841, Trnava (Tyrnau) in 1844, Košice (Kaschau) in 1844. In 1923 was founded Mestská sporiteľňa in Bratislava. A new era began when the bank became part of Československá štátna sporiteľňa (Czechoslovak State Savings Bank), in 1953 when it was established. From 1969, our bank started its activity as a separate entity - Slovenská štátna sporiteľňa, š. p. ú. (Slovak State Savings Bank, state monetary institution)

After 1989, a liberalization of the financial sector was seen, which brought new competitors to the market. In 1990, we obtained a universal bank license and extended our services within the institutional and business clients segments as well. The activity of Slovenská Sporiteľna on money and capital markets, in relation to securities, started when they were set up in 1991. Only 3 years later, our bank was transformed into a joint stock company and started to act under the commercial name "Slovenská sporiteľňa, akciová spoločnosť."

In 2001, an agreement was concluded between the Ministry of Finance of the Slovak Republic and Erste Bank, about the sale of the majority of shares. We then became part of the strong Erste Bank der oesterreichischen Sparkassen AG financial group.

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