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EBRD, EU & L'udová Banka promote SMEs in Slovak Republic
€10 million loan to help fuel under-financed sector
Entrepreneurs across the Slovak Republic will gain better access to finance
following a €10 million loan from the EBRD to L'udová Banka, the ninth largest
bank in the country and a subsidiary of Österreichische Volksbanken AG. In
addition to the EBRD loan, up to almost €1.5 million is being provided by the
European Union for technical assistance and financial incentives.
These amounts are extended under the EU/EBRD SME Finance Facility, a joint
programme of the European Commission and the EBRD to support the development
and growth of entrepreneurs by facilitating their access to finance launched
in 1999. The Bank has committed €700 million, of which €637 million has been
disbursed by local banks and leasing companies via 26,974 loans and leases.
The EC has committed €130 million in grant financing and for technical
assistance since the Facility’s launch in 1999.
The proceeds of the loan will be used by L'udová Banka to finance SME clients.
Noreen Doyle, First Vice President at the EBRD, said, “This loan is important
for Slovakia’s enterprise sector, since financing for entrepreneurs is
currently limited. It is important that owners of small businesses have access
to capital, because these SMEs are the engines of growth that promote economic
development in any country. We hope that this project will demonstrate to
other banks the excellent opportunities that exist in this growing sector.
Established in 1991, L'udová Banka is a medium-sized commercial bank providing
a wide range of banking services to local enterprises and individuals. With
its headquarters in Bratislava, and 39 branches in the main cities throughout
the country, L'udová Banka has a national presence.
Announcing the launch of the loan fund, Mr. Jozef Kollár, CEO of L'udová
Banka, said, “This loan from the EBRD, and the technical assistance provided
by Bank of Ireland International Advisory Services, will support L'udová Banka
to serve the finance requirements of small and medium clients. The priority
for L'udová Banka is to provide continuing support to it’s SME clients to help
them grow their businesses. Access to the EU/EBRD SME Finance Facility will
support this strategy significantly.”
The SME Facility was launched in 1999 under the European Commission’s Phare
Programme, the main channel for the EU's financial and technical cooperation
with the candidate countries of central and eastern Europe. The budget
earmarked for the Programme as a whole is about €1.5 billion a year. (For
further information see: http://europa.eu.int/comm/enlargement/)
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