Investment & Fund Management

In June 2019, the European Investment Fund (EIF) and Austria Wirtschaftsservice (aws), Austria’s national promotional bank, signed an agreement to extend their existing COSME Loan Guarantee Facility (LGF) by two years, increasing the guarantee volume from EUR 85 million to EUR 215 million. This extension was prompted by a significant demand from small and medium-sized enterprises (SMEs) in Austria for access to financing, which had become increasingly challenging in the current economic environment.

The tailored solution provided through this agreement allows aws to offer guarantees for bank loans, including working capital loans, leasing, and other debt financing, backed by EU counter-guarantees. This strategic partnership is expected to facilitate over EUR 160 million in additional financing for more than 2,000 SMEs, enabling them to support their business development and enhance their competitiveness.

The results of this initiative are quantifiable and significant. The extension of the agreement is anticipated to provide critical financial support to SMEs, which are considered the backbone of the European economy. The EIF's Chief Investment Officer, Alessandro Tappi, expressed confidence that the increased guarantee amount would be fully utilized within the availability period, reflecting the strong commitment of both the EIF and the EU to support SMEs in overcoming financial hurdles. Austrian Federal Minister for Digital and Economic Affairs, Elisabeth Udolf-Strobel, highlighted that this initiative would reduce guarantee fees and increase guarantee volumes, directly benefiting domestic SMEs.