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European Guarantee Fund well over half its €24.4 bn target in first 6 months

Christian Fernsby |
The European Guarantee Fund reached €16 billion in approved financing at the end of June.

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This represents over 65% of the available € 24.4 billion in EU Member States’ guarantees to support financing to European businesses struggling after the economic downturn. Total signatures with beneficiaries of financing under the EGF stood at €8.4 billion, mostly benefitting SMEs.

Demand for EGF financing remains strong for both loan guarantees and venture capital, and EGF agreements have been signed in all 22 participating EU countries. Sizeable transactions were signed recently in Italy, Finland and France, keeping the EGF on track to mobilise investments worth up to 8 times the fund’s size of €24.4 billion by the end of 2021. The initiative is expected to reach three-quarters of its target by early autumn.

The first venture capital deals were signed in Spain, Lithuania and Belgium. Some 7% of EGF is aimed at financing venture capital projects.

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