On Monday 22 November, the European Commission validated changes to the Pan-European Guarantee Fund set up on 14 December 2020 to support businesses affected by the consequences of the Covid-19 pandemic.
The Fund pools Member States’ support under the management of the European Investment Bank Group. It aims to meet the financing needs of European companies, mainly small and medium-sized enterprises (SMEs), in a coordinated manner by providing guarantees on debt and equity instruments.
All Member States have the option to participate in the Fund. To date, 22 Member States have decided to participate (Austria, Belgium, Bulgaria, Croatia, Cyprus, Denmark, Finland, France, Germany, Greece, Ireland, Italy, Lithuania, Luxembourg, Malta, the Netherlands, Poland, Portugal, Slovakia, Slovenia, Spain and Sweden).
In view of the current needs arising from the protracted nature of the crisis, the Commission has approved the following changes to the Fund: - an increase in the financing ceilings and maximum maturities of certain guaranteed products; - a possibility for banks to include loans and other financing options under the Fund’s guarantee until 30 June 2022 and to further extend the maturity of such loans in duly justified circumstances; - a new basket bond product to meet the specific financing needs of SMEs and mid-sized companies. (Original version in French by Lionel Changeur)