Lengthy-term funding assist wanted to spice up inexperienced and digital transformation of the Czech Republic says the newest EIB Funding Survey

Lengthy-term funding assist wanted to spice up inexperienced and digital transformation of the Czech Republic says the newest EIB Funding Survey

  • The European Funding Financial institution and the Czech Banking Affiliation hosted a digital convention entitled “Funding and funding finance within the Czech Republic” at the moment.
  • The EIB offered the outcomes of its newest annual EIB Funding Report and Survey (EIBIS) for Europe and the particular outcomes for the Czech Republic, offering insights on funding dynamics and funding wants.
  • After the primary wave of COVID-19, half of Czech companies already deliberate to cut back their funding as a result of pandemic. Nevertheless, companies know they should make investments extra to counter the influence of the pandemic.
  • Simply over half of Czech companies have invested or are planning to take a position to sort out the influence of local weather change on their enterprise.

As a part of a sequence of occasions organised to debate present funding developments in numerous EU Member States, the Czech Banking Affiliation and the European Funding Financial institution, in partnership with the Confederation of Business of the Czech Republic and the Institute for Democracy & Financial Evaluation (IDEA), hosted the webinar “Funding and funding finance within the Czech Republic”. It centered on funding wants and priorities for the Czech Republic within the period of COVID-19, digitalisation and local weather change.

Through the webinar, EIB Vice-President Lilyana Pavlova gave an outline of the EIB’s actions within the Czech Republic and EIB Head of Financial Research Pedro de Lima offered the outcomes of the 2020 EIB Funding Survey for the Czech Republic.

The survey highlighted that in the long run, COVID-19 will doubtless give rise to additional funding wants within the Czech Republic, notably within the areas of service or product portfolio and the availability chain.

EIB Vice-President Lilyana Pavlova mentioned: “Whereas the COVID-19 pandemic impacted funding in Czechia, the EIB, because the EU local weather financial institution, is devoted to serving to the nation by way of a digital and inexperienced restoration of the economic system. Over the previous 5 years, we have now supplied on common €900 million per yr in new lending to the Czech private and non-private sectors and can proceed to behave as a key associate within the nation.”

EIB Head of Financial Research Pedro de Lima added: “About half of Czech companies deliberate to chop their funding spending and a 3rd anticipate the pandemic to have lasting results. This requires affected person long-term funding assist – to speed up the restoration, safeguard jobs and adapt to the challenges of the inexperienced and digital transformation.”

Zdenek Tůma, Member of the Czech Banking Affiliation Presidium, and Chairman of the CSOB Supervisory Board, mentioned: “Czech banks’ collaboration with the EIB Group is lengthy lasting, skilled and mutually advantageous. It brings advantages to closing recipients not solely by way of aggressive rates of interest however, within the case of the European Funding Fund´s ensures, it additionally helps banks to finance modern SMEs that may in any other case be commercially dangerous as debtors. And it not solely helps new corporations to enter markets, it helps them in administratively pleasant method, and it permits to share with them the advantages of a pan-European triple A creditor’s funding.”

Helena Horska, Chief Economist of the Raiffeisen Financial institution, mentioned: “The Czech Republic’s funding hole is roughly €22 billion for 2020-2023. With out stimulating personal funding, we won’t be able to shut it. And funding must be sensible to put the foundations of development.”

The webinar was attended by enterprise leaders, economists, policymakers and representatives from monetary establishments and public sector companions, together with Jan Dejl, Deputy Minister for the Ministry of Business and Commerce, Daniel Münich, Govt Director of the Institute for Democracy & Financial Evaluation (IDEA) at CERGE-EI, Jitka Haubová, COO of Komercni Banka, Jan Švejnar, Professor of International Political Economic system at Columbia College and Adviser to the Czech Authorities, and Tomáš Kolář, CEO of Linet.

The EIB Funding Survey gives a transparent image of the challenges for companies within the EU. Along with well-known funding limitations, akin to expertise shortages and points of the regulatory atmosphere, companies have to cope with local weather change and with the implications of COVID-19. This interprets into elevated funding in innovation and digital applied sciences, and a rethink of the companies’ international worth chains.

That is additionally true for companies within the Czech Republic. Over the approaching years, most Czech companies intend to prioritise the event or the introduction of recent services and products over capability enlargement and substitute. Simply over half of companies have invested or are planning to take a position to sort out the influence of local weather change on their enterprise. On common, companies devoted about 10% of their funding spending to vitality effectivity, much like these in the remainder of the EU.

Learn the EIB Funding Survey 2020 EIBIS 2020 – Czech Republic overview

Displays from the seminar accessible on the post-occasion web site.

In regards to the EIBIS

The annual EIB Group Survey on Funding and Funding Finance (EIBIS) is an EU-wide survey that gathers qualitative and quantitative info on companies’ funding actions, their financing necessities and the difficulties they face. The survey was developed by our Economics Division and gives a novel set of knowledge. It’s the solely survey that makes it doable to check funding throughout nations and sectors within the EU. The survey collects information from roughly 13 300 companies in complete, throughout the EU27, the UK and, since 2019, the US.

Extra info on The EIB Funding Survey – 2020 EU overview

In regards to the European Funding Financial institution

The EIB has labored with the Czech Republic since 1992 and invested in infrastructure, small companies, atmosphere and innovation. Since its begin of operations in Czech Republic, the EIB has supplied €23.23 billion of financing to 192 tasks.

In regards to the Czech Banking Affiliation

The Czech Banking Affiliation is a voluntary affiliation of banks and constructing societies working on the Czech market representing greater than 99% of the Czech banking sector. The Czech Banking Affiliation has been supporting the event of the Czech banking sector, all the economic system, and the monetary literacy of Czechs since 1990.

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