European Investment Fund, PKO Leasing agree to support 10K Polish startups
The agreement was signed under the Credit Guarantee Instrument of the EU COSME program. The agreement will allow PKO Leasing to provide SMEs with new leases and loans on favorable terms for a period of two years, until 2020.
COSME is the EU program for the Competitiveness of Enterprises and Small and Medium-sized Enterprises (SMEs) running from 2014 to 2020 with a total budget of €2.3 billion.
Approximately 10,000 Polish entrepreneurs, including startups, are expected to benefit from the better financing terms. The maximum transaction amount is set at PLN 1.5 million (approximately €348,000).
The agreement aims to generate PLN 1.5 billion (€348 million) in new financing for 10,000 Polish SMEs.
“The new COSME agreement is a remarkable success of EIF and PKO Leasing. Polish SMEs will access investment financing on favorable terms that otherwise would not be available,” said Jadwiga Emilewicz, Poland’s Minister of Entrepreneurship and Technology in a statement.
“I am convinced that this financing will allow Polish companies to develop their businesses and increase competitiveness. Those are the goals of the COSME program and of our Strategy for Responsible Development,” added Emilewicz.
The current agreement is the largest direct guarantee EIF transaction with a Polish intermediary, and it is supported by the European Fund for Strategic Investments (EFSI), the central pillar of the Investment Plan for Europe, the Juncker Plan.
The Investment Plan for Europe, the Juncker Plan, focuses on boosting investments to create jobs and growth by making smarter use of new and existing financial resources, removing obstacles to investment and providing visibility and technical assistance to investment projects.
PKO Leasing is the leader in providing leasing services in Poland. Diverse offer includes products and services for every business sector, also offering factoring and insurance support.
“We have a long history of cooperation with the European Investment Fund and it has always brought benefits to Polish entrepreneurs,” said Andrzej Krzemiński, President of the Management Board of PKO Leasing in a statement.
“I may assure that these benefits will be offered also under the current COSME agreement, which has the largest portfolio and will serve substantial amount of SMEs in Poland,” he added.
The EIF’s central mission is to support Europe’s micro, small and medium-sized businesses (SMEs) by helping them to access finance.
“The EIF is delivering a range of financing options for Polish SMEs via the Investment Plan for Europe,” said EIF Chief Executive, Pier Luigi Gilibert.
“We are pleased to be announcing this new agreement with PKO Leasing, which will help the company to provide enhanced access to finance to risky SMEs and start-ups,” he added.
This is the largest ever EIF direct guarantee transaction in Poland under EU financial instruments.
The EIF designs and develops venture and growth capital, guarantees and microfinance instruments which specifically target this market segment. In this role, EIF fosters EU objectives in support of innovation, research and development, entrepreneurship, growth, and employment.