Funding corresponding to almost half of its target for 2021 has already been approved by the Pan-European Guarantee Fund (PTE). It is noted that the PTE is part of the European package of 540 billion euros agreed by the EU in 2020 for economic recovery.
Following its authorization under the EU State Aid Notification Process in December 2020, the Fund has approved € 11.7 billion to support European companies facing financial difficulties due to the COVID-19 pandemic.
This amount represents about half of its target for 2021. The PTE is mobilizing additional funding, and the initiatives it has supported to date are expected to release € 93.9 billion in funding for the EU economy. approved by the PTE, 2.1 billion euros were signed at the end of April. So the Fund’s resources are already reaching EU companies.
“The EIB Group was one of the first to move to ensure that Europe helps its businesses and citizens cope with the economic effects of the COVID-19 crisis. “Our main concern with the Pan-European Guarantee Fund is to support EU companies and provide them with the funding they need to tackle the pandemic,” said EIB President Werner Hoyer.
“These figures show that Europe’s response is really changing the data in record time. “This funding is in addition to the remaining amounts already provided by the EIB Group to fund research and development of treatments and vaccines, thanks to which we now see light in the COVID-19 pandemic tunnel,” Hoyer added.
With the contracts signed, which cover almost all 22 participating EU countries and include large transactions with Nordea, Raiffeisen and Banca March, PTE is expected to mobilize by 2021 to almost eight times its resources, amounting to 24.4 billion. The demand for funding from the PTE is high and with further approvals and signatures it is expected that the Fund will quickly exceed 50% of its target, by early summer.
“SMEs need funding and they need it now,” added Dario Scannapieco, vice president of the EIB and chairman of the PTE board.
“We are making superhuman efforts to channel unprecedented amounts of resources into the markets. “In the first half of the year, we mobilized almost 94 billion euros, which is almost 50% of the Fund’s target, thus ensuring that EU entrepreneurs will have the support they need.”
The PTE was set up by the European Investment Bank Group and the EU Member States as a shield to protect European companies severely affected by the COVID-19 crisis. Thanks to the guarantees of PTE, the financial intermediaries are motivated to lend to the companies more funds and on better terms, offering them access to direct and advantageous financing, in order to overcome the financial difficulties caused by the COVID-19 pandemic.