Brussels, 30/11/2011 (Agence Europe) - Small and medium-sized enterprises (SMEs) will benefit from additional guarantees to European funds, in an effort to facilitate SME access to credit. On Tuesday 29 November, the European commissioner for regional policy, Johannes Hahn, proposed measures adopted by the European Commission to bolster investments in the real economy throughout the Union by expanding the field of action for the different financial engineering instruments, as well as the lever effect. Finance from structural funds would act as guarantees to SMEs, compensate for the lack of liquidity and help obtain loans more easily. The novel aspect of this initiative results from the fact that investments can be made not only during the setting up or expansion of a company but also throughout the normal course of their activities. From now on, all member states can benefit from this mechanism, whereas previously only 15 member states had the right to use it.
European Regional Development Funds (ERDF) will therefore help to release an additional €1 billion in this connection for SMEs. The Commission is counting on the lever effect that will multiply by six the effects of the resources from the ERDF. For €16 committed, €100 is expected to be guaranteed for enterprise. This initiative is expected to bring some much-needed oxygen to entrepreneurs who are currently being starved of credit. (MD/transl.fl)