The EIB Group to increase its support to SMEs for the period 2013 to 2015 thanks to the EIB’s capital increase agreed in 2012

13-5-2013 — /europawire.eu/ — It is vital that small and medium-sized businesses are able to invest, even during a downturn. The EIB Group (EIB and EIF) is increasing its support to SMEs for the period 2013 to 2015 thanks to the EIB’s capital increase agreed in 2012. Last year already, we provided EUR 13bn to help finance more than 200 000 SMEs across Europe.

This year, thousands of small and medium-sized companies will get access to attractive funding following loans with local banks. As banks are usually required to match this funding before on-lending to SMEs, the amount of available funds is effectively doubled. Financial backing for SMEs is also coming from the European Investment Fund (EIF).

In its meeting of April 22, the EIB’s Board of Directors announced approvals of loans worth up to EUR 2.4 bn for SMEs and mid-cap companies (up to 3 000 employees), bringing the total EIB support for European SMEs and mid-caps approved in the first four months of 2013 up to some EUR 4.2bn.

In addition, the European Investment Fund, the EIB Group`s specialist provider of risk finance to support SMEs in Europe, has also approved a number of new transactions between January and April 2013 which are expected to catalyse up to EUR 2.8bn of loans and venture capital.

“Providing finance to SMEs and Mid-Caps is our key priority since they are essential for growth, employment and innovation in the EU economy. We will continue to strengthen our support for these crucial European businesses in the course of this year and the years to come” says Werner Hoyer, EIB President. Smaller businesses are by far the biggest employers in the EU. They act quickly on market opportunities and are highly innovative.

For example, in Ireland, the EIB signed its largest scheme for local SMEs so far, a EUR 200m loan with AIB, and the first to include “broad eligibility” for mid-cap companies there.

In Germany we signed a EUR 400m with Commerzbank and a EUR 100m contract with smaller business specialist Deutsche Leasing. This will help them lend to their client base in 19 European countries.

In Spain, we agreed to lend EUR 400m to Banco Santander doubling the EUR 400m granted by the EIB in September 2012 to EUR 800m. We also signed a EUR 200m loan to Bankinter and to Banca March and a EUR 50m loan with Instituto de Finanzas de Cantabria.

In Portugal we signed a EUR 200m loan with Millenium bcp and in Romania, we are working with Banca Comerciala Romania which is on-lending EUR 50m on our behalf.

Please see here for an overview of our work with smaller businesses.

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