Investment & Fund Management
The European Investment
Full Credential Description
The European Investment Fund (EIF) and ProCredit group signed an agreement aimed at enhancing lending to innovative small and medium-sized enterprises (SMEs) and small mid-caps under the InnovFin initiative, which is supported by the European Commission. The specific challenge faced by ProCredit was the need to provide financing to innovative companies across several Southeast European countries, including Albania, Bosnia and Herzegovina, Bulgaria, The Former Yugoslav Republic of Macedonia, Moldova, Romania, and Serbia.
To address this issue, the EIF provided a guarantee under the InnovFin SME Guarantee, allowing ProCredit to offer a total of EUR 250 million in financing to these innovative companies. This agreement marked the first umbrella InnovFin SME guarantee covering the specified countries, enabling ProCredit banks to extend additional financing at favorable conditions to support innovation and growth among their clients.
As a result of this tailored solution, ProCredit is positioned to stimulate innovative ideas and investments, thereby increasing the competitiveness of SMEs in the region. The InnovFin SME Guarantee specifically aims to improve access to debt finance for innovative SMEs and small mid-caps, facilitating investments in research, development, and innovation activities. This initiative is expected to promote job creation and economic growth in the participating countries, aligning with the broader objectives of the EU's Horizon 2020 program, which seeks to enhance Europe's economic competitiveness through research and innovation.