250 million euros and an EU guarantee for lending to small and medium-sized enterprises in Southeast Europe

Small and medium-sized enterprises in seven countries of Southeast Europe (Albania, Bosnia and Herzegovina, Bulgaria, the Former Yugoslav Republic of Macedonia, Moldova, Romania and Serbia) will have easier access to risk capital thanks to the guarantee of Innovfin,an EU credit instrument within the Horizon 2020 program. The agreement signed today by the European Investment fund (EIF) and the German banking group ProCredit will enable banks to conclude new credit agreements with SMEs and mid-cap companies in the total amount of 250 million euros over the next two years.Carlos Moedas, European Commissioner for Research, Science and Innovation, said: "The credit agreement signed today is open to all SMEs and mid-cap companies in the EU member states, but also in the countries that participate in the Horizon 2020 program in Southeast Europe agreement is to encourage investments in innovative companies for the sake of growth and employment."The European Investment Fund and the EU, as part of the InnovFin guarantee for small and medium-sized enterprises, guarantee up to 50 percent of the amount of loans intended for activities in the field of innovation. This is part of a new generation of financial instruments developed under Horizon 2020, the EU's framework program for research and innovation (IP/14/670).ContextThe InnovFin instrument provides guarantees and counter-guarantees for debt financing ranging from 25,000 to 7.5 million euros with the aim of improving access to credit financing for innovative SMEs and mid-cap companies (up to 499 employees). The facility is managed by the EIF while loans are provided by financial intermediaries – banks and other financial institutions – in member states and associated countries. Within this instrument, the EIF provides a guarantee to financial intermediaries in the amount of losses incurred as a result of debt financing covered by this instrument.The InnovFin guarantee for small and medium-sized enterprises is part of "EU Financing for Innovators", i.e. a new generation of EU financial instruments and advisory services developed within the Horizon 2020 program with the aim of providing innovative enterprises with better access to financing. In this way, up to 48 billion euros will be invested in research and innovation across Europe.About the Horizon 2020 programOn January 1, 2014, the European Union launched a new program for funding research and innovation called Horizon 2020. In a period of seven years, almost 80 billion euros will be invested in innovation projects and research, which will support the competitiveness of the European economy and expand the boundaries of human knowledge. The EU's research budget is focused mainly on improving everyday life in areas such as health, environment, transport, food and energy. Research partnerships with the pharmaceutical, aerospace, automotive and electronic industries will encourage a combination of private-public investments, all with the aim of supporting further growth and the employment of a highly qualified workforce. More: http://europa.rs/250-miliona-evra-i-garancija-eu-za-kreditiranje-malih-i-srednjeh-preduzeca-u-jugoistocnoj-evropi/