Danish cooperative bank Merkur Andelskasse has signed a guarantee agreement with the European Investment Fund (EIF). The new agreement, which falls under the “European Guarantee Fund”, ensures that Danish SMEs will be able to benefit from up to DKK 148,76 million (€20 million) in new lending on more favourable terms. Merkur will provide new, more favourable, debt financing to these Danish SMEs ensuring that they have sufficient financing available to mitigate the economic impacts of the COVID-19 crisis and are able to continue their growth and development in the medium to long-term.
The guarantee backed loans can be used for investments in i.a.new or existing buildings, energy retrofit and climate mitigation, equipment and machinery, but also working capital.
Charlotte Skovgaard, CEO of Merkur Andelskasse: “We are proud to be selected as one of the Danish financial institutions that can provide financing partly guaranteed from the European Guarantee Fund. For many small and mid-sized companies and institutions, regardless whether they are directly impacted by the corona crisis or not, the general post-corona situation on the markets and in society create a number of uncertainties which this guarantee scheme will help to overcome. We are looking forward to help existing and new customers with their investments for the future, and with Merkur’s emphasis on sustainability and social responsibility we will of course make extra efforts to ensure investments are climate friendly, environmentally sustainable and socially responsible”.
“Although we start to see the end of the healthcare emergency in most of the EU, the economic consequences are far from over.” said EIF Chief Executive Alain Godard. “The European Guarantee Fund is a fantastic instrument which allows the EIB and EIF to make available the necessary funding for European companies that are in principle healthy, but struggle with the current conditions. Our guarantee supports Merkur in making available financing under favourable conditions, helping SMEs on their way out of the crisis.”
The European Guarantee Fund was founded by the European Investment Bank Group (comprising the EIB and the EIF) and EU Member States to ensure that SMEs with sustainable business plans are provided liquidity to overcome COVID-19 related adversities, and that healthy business are supported to grow.