Czech Moravian Guarantee and Development Bank and the CEB conclude a loan agreement for the financing of job-creating SME investment projects

PARIS - The Czech Moravian Guarantee and Development Bank (Českomoravská záruční a rozvojová banka – CMZRB) and the CEB concluded a EUR 15 million loan agreement to co-finance productive investment sub-projects undertaken by Small and Medium-sized Enterprises (SMEs) located in the Czech Republic (outside the region of Prague). Financing will be extended to beneficiary SMEs in the form of subordinated loans within the framework of the EU-funded programme called PROGRES, part of the 2007-2013 Operational Programme Enterprise and Innovation.

The aim of the Project is to contribute to the creation of new permanent and seasonal jobs through strengthening the competitive position by facilitating access to medium and long-term funding of beneficiary SMEs, which are otherwise limited in accessing third party financing. SMEs play a significant role in the Czech economy and are a driving force behind innovation, employment and social integration.

The project represents the second operation with CMZRB, a key partner for the CEB in the Czech Republic, as the only State-controlled specialized banking institution with a development mandate, including providing assistance to SMEs and supporting the realization of public policies. The CEB initiated its cooperation with CMZRB in June 2005 with a € 20 million project in the sector of environmental protection, through the co-financing of municipal investments aimed at purification and protection of surface and ground water.

Since the Czech Republic became a member state of the CEB in 1999, loans approved in the country have amounted to around € 85 million for 5 projects, most of which through partner financial intermediaries.