Bratislava, June 29, 2020 – Today, the Slovak Investment Holding (SIH), Tatra banka (TB) and Slovenská sporiteľňa (SLSP) signed an agreement on SIH Anti-Corona Guarantee 2 designed to support Slovak enterprises affected by the COVID-19 pandemic, thus adding two more major commercial banks to the list of financial institutions participating in the new guarantee scheme; both banks responded within a week of publishing the call.
“We view the signing of agreements on SIH Anti-Corona Guarantee 2 with two major financial institutions, namely Tatra banka and Slovenská sporiteľňa, very positively. We consider it a proof of our willingness to help Slovak enterprises in these difficult times. We believe this financial instrument will facilitate state aid to the largest possible number of businesses, both small and medium-sized enterprises and large corporations,” said Peter Dittrich, SIH Executive Board Vice-Chairman and Investments Director, upon signing the agreement.
“The long-awaited assistance for the business sector in the form of state-guaranteed loans is beginning to take shape. We are glad that through close cooperation with the SIH, Tatra Banka can help Slovak firms affected by the corona crisis and thus contribute to the recovery of Slovakia’s economy. At the same time, our participation in the SIH Anti-Corona Guarantee 2 programme further expands our possibilities to provide loans under favourable terms in order to assist and support the negatively affected business environment,” summed up Peter Matúš, Executive Board Member of TB.
“I am happy that after previously introduced minor schemes aimed at helping firms a grand guarantee scheme has become a reality. I believe it will allow businesses to get their hands on new funds really quickly and easily. The advantage of this scheme compared to existing loan schemes is that it makes funds equally available to all firms, regardless of their size. I view the signed guarantee scheme as a viable instrument to overcome the difficult period caused by the pandemic as well as to support employment through improving firms’ financial condition and liquidity,” seconded Norbert Hovančák, Executive Board Member of SLSP responsible for corporate banking.
SIH Anti-Corona Guarantee 2
The new financial instrument is supposed to facilitate the provision of bridge loans with a 12-month deferment period on principal and interest. The maximum amount of provided loans with maturity of two to six years is €2 million per loan. The maximum limit on interest rates shall 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 operating as well as investment 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 other eligible banks to manifest their interest over the next several weeks and the first loans to be extended in the course of July 2020.