The European Investment Fund (EIF) and Banca Intesa have signed an agreement stipulating the InnovFin guarantee facility intended for innovative SMEs in Serbia.
Thanks to this agreement, in the following two years, Banca Intesa will be able to grant 100 million EUR in loans to innovative companies with the help of the EIF’s guarantee. The guarantee covers 50% of each loan disbursed by Banca Intesa AD Beograd and is expected to generate a total loan portfolio of EUR 100 million.
The aim of the InnovFin SME Guarantee is to encourage banks or other financial institutions to lend to SMEs and small mid-caps (up to 499 employees) in need of investment and/or operating capital to finance research, development and innovation activities, with the financial support from the EU.
“This is a third agreement we have signed with the EIF in the space of just one year with the aim of providing an additional boost to economic growth by enabling entrepreneurs and SMEs to access favourable financing. After providing them with working capital loans without hard collaterals under the COSME initiative, through the InnovFin programme we will also offer them long-term investment lending with significantly relaxed collateral requirements. We believe that in this way we will give a further contribution for the expected increase in lending to the economy, as well as for the start of a new investment cycle in Serbia”, Draginja Djuric, Chairwoman of Banca Intesa Beograd’s Executive Board said.
The EU Commissioner for Research, Science and Innovation, Carlos Moedas said that, owing to the agreement, entrepreneurs in Serbia would now be able to access additional funds for development of new products, services and projects.
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