The European Investment Bank (EIB) has signed a EUR 70m loan (equivalent to CZK 1.8bn) with Moneta Money Bank, one of the largest household and sole proprietorships in the Czech Republic, to support small and medium-sized companies and mid-cap companies.
The EIB loan aims to address the liquidity and investment barriers that small businesses are currently facing, thus helping to mitigate the negative economic impact of the COVID-19 pandemic.
EIB Vice President Lilyana Pavlova said: “Small businesses account for more than half of total economic value added and two thirds of jobs in the Czech Republic. Support for the continuous development of the SME segment and mid-cap companies during the crisis caused by the COVID-19 pandemic is therefore essential for maintaining employment and supporting the resilience of the Czech economy. Our loan to Moneta aims to meet the needs of these key economic players and to create the necessary conditions for the country’s future growth in the post-pandemic period. This cooperation between the European Investment Bank and Moneta Money Bank will contribute to regional development, help reduce disparities within regions and help increase the competitiveness and productivity of SME companies. ”
Tomáš Spurný, Chairman of the Board of Directors of the MONETA Group, said: “Our cooperation with the EIB will further strengthen our commitment to support sole proprietors and small entrepreneurs who form the backbone of the Czech economy. We are ready to continue to achieve our goal of becoming a stable champion for this very important part of our economic landscape in these difficult times… ”
Small and medium-sized enterprises and smaller mid-cap companies are strongly exposed to the negative effects of the COVID-19 pandemic. Compared to large firms, smaller firms usually have thinner liquidity reserves, fewer financing alternatives and assets that could be quickly sold off as a source of additional capital. The impact of the pandemic across Europe, including the Czech Republic, is associated with a tangible decline in investment and increased liquidity needs.
