Komerční banka and EIB to support employment of young people

Press release

Prague, 4 June 2015 – Komerční banka will support companies employing young people up to 30. Together with the EIB, Komerční banka offers these companies more advantageous financing totalling almost two billion Czech crowns. Compared with the market rate, the interest rate is 0.3% lower. The more advantageous financing can be combined with EU subsidies.

Komerční banka and the European Investment Bank (EIB) have entered into an agreement that will make it possible to continue to support employers of young employees up to 30. For Komerční banka’s clients, CZK 1.9 billion (EUR 70 million) is now ready under the EuroPremium Young programme. Subject to meeting simple criteria companies will be granted a better interest rate, 0.3% p.a. lower than the market rate.

The programme is intended for small and medium-sized enterprises and mid-cap companies (up to 3,000 employees) that employed in the past six months, or will employ in the next six months, at least one young person. Companies offering technical education, practical experience and internships for young people and those that actively cooperate with a technical institute or school or a university to employ young people aged 15 to 30 are also eligible for the benefits of the EuroPremium Young programme.

“The programme for support of young people’s employment is one in a series of specific innovations related to more advantageous financing for Komerční banka’s corporate clients. I would also underline the social aspect of active support for the creation of new job opportunities for the young generation. Unfortunately, statistics indicate that the rate of unemployment in this group is up to two times higher,” said Iveta Ocásková, Executive Director for Corporate Banking at KB.

These privileged loans can be used for investment in tangible and intangible assets and also for operating expenditure. The minimum tenor of the loans is two years. EIB’s funds can also be used for co-financing subsidies from other EU sources up to 100% of the costs. In addition to relationship managers, KB EU POINT specialists in all Czech regions provide expert assistance with the structuring of the loans.