Investment & Fund Management

The European Investment Fund (EIF) and Bank Polska Kasa Opieki (Bank Pekao S.A.) entered into a COSME agreement aimed at addressing the financing challenges faced by small and medium-sized enterprises (SMEs) in Poland. The specific issue at hand was the limited access to loans for approximately 1,500 Polish SMEs, particularly for those that are start-ups or have struggled to secure financing due to high down-payment requirements.

To tackle this problem, the agreement allows Bank Pekao S.A. to provide PLN 1.2 billion (approximately EUR 285 million) in loans to these SMEs, offering investment and operational loans with more favorable terms. This initiative is backed by the European Fund for Strategic Investments (EFSI), which is part of the broader Investment Plan for Europe, also known as the Juncker Plan. The tailored solution not only enhances access to finance for risky SMEs but also aligns with the EIF's strategy to support entrepreneurship and job creation.

As a result of this agreement, around 1,500 Polish SMEs are expected to benefit from improved financing options, enabling them to scale up their operations. This initiative represents the largest direct guarantee EIF transaction with a Polish intermediary under EU programs, showcasing a significant step in facilitating financial support for Polish entrepreneurs. The collaboration between EIF and Bank Pekao S.A. exemplifies effective public-private partnerships aimed at fostering economic growth and innovation within the SME sector in Poland.