Slovak exporters could gain access to up to €100 million in financing through a European Investment Bank (EIB) loan to the country’s Export-Import Bank, known as Eximbanka.
The EIB approved the project July 15, its record shows, and signed the €50 million loan on Thursday, Oct. 29. Slovakia’s Central Register of Contracts listed the finance contract on Monday, Nov. 2. Eximbanka will contribute a matching €50 million, creating a pool of up to €100 million, the EIB said.
The funding targets export-oriented small and medium-sized enterprises and mid-caps. Firms may use the loans for investment or working capital. The EIB says the credit line is meant to support innovation and technological upgrades.
About 80% of the financing is earmarked for businesses in Slovakia’s less developed regions. The EIB expects participating firms to pay lower interest and have longer repayment periods than under conventional Slovak loans. It has not disclosed specific rates or maturities.
Eximbanka will distribute the money as the financial intermediary. The EIB says smaller companies have limited access to long-term borrowing, a gap the credit line is intended to address.
The agency is Slovakia’s official export-credit provider, offering loans, guarantees and insurance. The EIB says Eximbanka also supports trade and investment projects that commercial lenders may be reluctant to finance.
Eximbanka CEO Rastislav Podhorec said the arrangement would improve access to financing for “innovation, modernisation and international expansion.” He linked the lending to economic growth and business opportunities in less developed regions.
The EIB said its work with Eximbanka has included support for Slovak small and medium-sized enterprises and mid-caps during the COVID-19 crisis. The EIB and Eximbanka have not published application dates, individual borrower limits or a disbursement schedule for the new facility.