New programme for small business support: 36 Million Euro fund

The European Commission has adopted a programme to assist local banks and other credit institutions, particularly in the ten new EU Member States. This programme strives to alleviate the difficulties of financing business, especially for small and medium sized enterprises (SMEs).

Orchestrated by the Commission, this ”preparatory action on support for SMEs in the new financial environment” will be channelled through international financial institutions: the European Bank for Reconstruction and Development (EBRD), the European Investment Bank (EIB), the European Investment Fund (EIF) and the Council of Europe Bank together with the KfW (Kreditanstalt für Wiederaufbau).

The initial € 6 million of annual funding of technical assistance and capacity-building in EU countries with low levels of bank lending will be multiplied by a further 30 million euros of the participating financial institutions’ own funds.

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Source: Cordis Rapidus