Innovative firms in Iceland to benefit from EU-guaranteed loans
The European Investment Fund (EIF) and Iceland's Arion Bank today signed a loan guarantee deal that will offer small and medium-sized companies (SME) in Iceland easier access to risk capital for the development of innovative ideas.
The EU-funded deal will allow the bank to more securely enter into loan agreements with companies of below 500 employees, as any potential losses on loans for innovative activities will be guaranteed by 50% by the EU under the loan guarantee scheme. Overall, the scheme is to generate a portfolio of €107 million in loans to innovative companies over the next two years.
Carlos Moedas, European Commissioner for Research, Science and Innovation, said: “Innovative Icelandic companies can now benefit from EU-guaranteed loans up to €107 million under Horizon 2020, the EU's research and innovation funding programme. The deal signed today will help these companies to reach their full potential and continue to contribute to economic growth and job creation in Iceland.”
This deal falls under the InnovFin SME Guarantee Facility, which is part of the new generation of financial instruments supported under Horizon 2020 (IP/14/670). Under this facility, financial intermediaries are guaranteed against a proportion of any losses incurred on the debt financing covered under the facility.
The EU-funded deal will allow the bank to more securely enter into loan agreements with companies of below 500 employees, as any potential losses on loans for innovative activities will be guaranteed by 50% by the EU under the loan guarantee scheme. Overall, the scheme is to generate a portfolio of €107 million in loans to innovative companies over the next two years.
Carlos Moedas, European Commissioner for Research, Science and Innovation, said: “Innovative Icelandic companies can now benefit from EU-guaranteed loans up to €107 million under Horizon 2020, the EU's research and innovation funding programme. The deal signed today will help these companies to reach their full potential and continue to contribute to economic growth and job creation in Iceland.”
This deal falls under the InnovFin SME Guarantee Facility, which is part of the new generation of financial instruments supported under Horizon 2020 (IP/14/670). Under this facility, financial intermediaries are guaranteed against a proportion of any losses incurred on the debt financing covered under the facility.