EIF and aws extend guarantee agreement to provide additional financing for SMEs in Austria

More than 2,000 small businesses will benefit from new loans thanks to a deal signed today between the European Investment Fund and Austria's national promotional bank, Austria Wirtschaftsservice (aws). At the annual event of the European Association of Guarantee Institutions in Antwerp, Belgium, EIF and aws signed an agreement to extend the existing COSME LGF agreement by two years to April 2021. Both partners also agreed to increase the guarantee volume by €130 million to €215 million.

Under the agreement, aws offers guarantees, backed by EU counter-guarantees, for bank loans (including working capital loans) and for leasing and other debt financing. It is expected that the extension and increase of the agreement will provide additional financing of more than €160 million at favorable conditions to over 2,000 SMEs in Austria.

European Commission Vice-President Jyrki Katainen, responsible for Jobs, Growth, Investment and Competitiveness, said: “Small and medium sized businesses in Austria have made good use of the opportunities already available from aws under the EU's COSME programme, and due to increasing demand, we are now extending the available envelope. Thanks to today's agreement which benefits from the EU budget guarantee, a further 2,000 SMEs in Austria will be able to gain access to €160 million worth of loans to support their business development.”

EIF Chief Investment Officer Alessandro Tappi commented: “I am delighted about the extension and the increase of the agreement with aws. In times when access to finance remains an important hurdle for small business, this cooperation is a clear testimony of EIF's and EU's strong commitment to support these companies, because they are the backbone of the European economy.” And he added: “Given the guarantee activity of aws over the last years, I expect that the increased amount will be fully utilised within the availability period”.

Austrian Federal Minister for Digital and Economic Affairs Elisabeth Udolf-Strobel, emphasised: “In a challenging economic environment, it is our goal to support Austrian SME. With this new extension agreement, aws can increase its guarantee volumes and reduce its guarantee fees. This will be of benefit to domestic SMEs and will upscale their competitiveness”.

aws Managing Director Bernhard Sagmeister underlined: “aws as the Austrian national promotional bank, has a long-standing relationship with EIF since 1998. It started with the guarantee business and was also extended to equity initiatives. For aws it is of special importance to enhance our instruments through the combination with European funds and to develop new initiatives jointly. We are pleased to further intensify our cooperation with the EIB group”.