The Deep and Comprehensive Free Trade Area (DCFTA) Initiative East mandate aims to strengthen the economic development in the countries which have signed an association agreement with the EU - namely Georgia, the Republic of Moldova and Ukraine (DCFTA East countries) - by providing financial and technical support to micro, small and medium-sized enterprises (SMEs).
The DCFTA Initiative East Delegation Agreement was signed by the European Commission and the EIB in December 2016, according to which EIF is entrusted by EIB to manage and implement the guarantee facility pillar (DCFTA Initiative East GF).
DCFTA Initiative East GF seeks to enhance access to finance for SMEs, supporting economic growth and employment-generating activities. The objective is to help the SME sector in these countries align to EU standards. A total loan volume of around EUR 300m is expected to be generated for the benefit of SMEs in underserved economic segments.
The EU funding for the DCFTA Initiative East GF is provided by the Neighbouring Investment Facility (NIF) and the programme of EU Support to Ukraine to Re-launch the Economy (EU SURE). These form part of the European Commission’s wider EU4Business initiatives. The total amount of EU funding is EUR 50m.
Selected financial intermediaries will be provided with a capped first loss portfolio guarantee or counter-guarantee, including credit risk coverage for the creation of new loan portfolios. This will enable local intermediary banks to improve lending terms and conditions. DCFTA Initiative East GF is expected to improve access to affordable finance for SMEs in the participating countries.
Eligible applicants are:
For detailed and complete eligibility criteria please refer to the application documents below.
EU-guaranteed loans under the DCFTA Initiative East GF will be available to all SMEs established and located in the DCFTA East countries. A list of financial intermediaries in each country will be published on EIF’s website following the completion of a standard selection procedure.
For financial institutions
Financial intermediaries are selected after the assessment of applications based on the call for expression of interest published below. Upon receipt of your application, a pre-selection of potential financial intermediaries will be carried out, followed by a full due diligence process before final approval.
Deadline for applications: 31.12. 2017
APPLY HERE by downloading and completing the application documentation:
To apply for a loan, enterprises in Georgia, the Republic of Moldova and Ukraine must contact EIF’s selected financial intermediaries in their country. The selection process is currently ongoing and the list of intermediaries will be published shortly.
For more information about finance available under further EU initiatives visit: http://europa.eu/youreurope/business/funding-grants/access-to-finance