Brussels, 28/10/2014 (Agence Europe) - On Tuesday 28 October, the European Commission authorised Portuguese plans for setting up a financial institution (Instituição Financeira de Desenvolvimento, IFD). The IFD will be funded by the Portuguese state and European Structural and Investment Funds. It will manage holding or specialised funds providing SMEs with access to funding on a co-investment basis with private investors. IFD's starting capital will be €100 million entirely subscribed by the Portuguese state, which has undertaken to notify the Commission of any further capital injection into the IFD. The Commission finds that the measure is an appropriate and proportionate means of funding SMEs where a market failure has been demonstrated. Given the fact that the market for SME financing, and in particular the scope of the market failures, may evolve, the Commission has granted the approval until 31 December 2020. The measure may be extended following a reassessment of the situation. (EL)