Bratislava, June 22, 2020 - The Slovak Investment Holding, JSC (SIH), has designed a new programme of financial assistance for Slovak businesses aimed at mitigating the effects of the COVID-19 pandemic. Following up on the success of its Anti-Corona Guarantee 1, the SIH is about to launch a new programme that will be administered in compliance with the approved Temporary Framework of State Aid to overcome the current period of medical and safety measures aimed at curbing the spread of the coronavirus.
The Slovak Investment Holding hereby releases a call for financial institutions to take part in the financial instrument “SIH Anti-Corona Guarantee 2”, whose objective is to facilitate the provision of favourable-terms bridge loans to Slovak entrepreneurs in order to help them overcome financial difficulties caused by the current situation and preserve jobs despite the on-going crisis.
This financial instrument comprises guarantees for banks by which the SIH shall, through its NDF I and NDF II funds, shoulder up to 90% of banks’ credit risk pertaining to all new loans extended to enterprises. The financial instrument is funded from two principal sources: first, European structural and investment funds (ESIF) with a total volume of allocated funds at €347 million; second, state financial assets with a total allocation volume based on banks’ needs and the overall limit of €1.75 billion.
The announced financial instrument should facilitate the provision of new bridge loans with maturity of two to six years (with one-year deferment period on principal and interest) up to the amount of €2 million per loan. The maximum limit on interest rates will be at 3.9% p.a. for microbusinesses and at 1.9% p.a. for other businesses. Applicable to each loan is a guarantee fee whose amount shall depend on the loan’s maturity; however, the fee shall be remitted if the business preserves employment at the pre-crisis level. The beneficiary businesses will be able to use the loaned funds to finance their investment and operating costs.
Eligible to take part in the financial instrument shall be all financial institutions that hold a valid banking licence and are authorised to provide loans in the Slovak Republic. For further information, please visit SIH official website at: www.sih.sk . The SIH expects the eligible banks to manifest their interest over the next several weeks and the first loans to be extended in early July 2020.