Investment & Fund Management

In July 2019, the European Investment Fund (EIF) and Cassa Depositi e Prestiti (CDP) entered into a significant guarantee agreement under the COSME (Competitiveness of Small and Medium-Sized Enterprises) Programme, aimed at addressing the financing challenges faced by small and medium enterprises (SMEs) in Italy. The initiative was designed to generate EUR 5.8 billion in new financing for approximately 65,000 SMEs, leveraging the support of the Investment Plan for Europe, also known as the Juncker Plan.

The tailored solution involved the EIF employing the EU's COSME Loan Guarantee Facility to enhance access to finance for domestic SMEs. Specifically, the agreement was expected to provide EUR 3.75 billion in counter-guarantees for Italy’s Guarantee Fund for SMEs, significantly boosting its capacity to support loans. This initiative allowed SMEs to access loans of up to EUR 150,000 with maturities exceeding 12 months, facilitating new investments estimated at around EUR 8 billion.

Quantifiable results from the initiative included the expectation that over the next two years, more than 65,000 SMEs would benefit from the new debt financing, which would activate substantial investments in the Italian economy. This agreement marked the second major initiative in favor of the SME Guarantee Fund, representing the largest project supported by the EU programme in a single country. Previous efforts had already seen over 47,000 SMEs receive EUR 4.1 billion in new loans, leading to investments of approximately EUR 5.7 billion within just 18 months. The collaboration between CDP and EIF was highlighted as a critical step in enhancing the financial resources available to SMEs, thereby fostering growth and innovation in Italy's economy.