Brussels, 07/01/2016 (Agence Europe) - The EIB and the European Investment Fund (EIF) will support the Dutch micro-finance institution Qredits to grant loans to very small businesses in the Netherlands, the European Commission announced on Thursday 7 January.
The EIB and Qredits have agreed on a loan facility of €100 million. The EIF has also signed an agreement to cover some of the credit risks for new loans to the tune of €25 million for very small businesses and SMEs. Both operations are supported by the European Fund for Strategic Investments (EFSI), the financial arm of the Juncker investment plan.
As any EIB loan may cover up to 50% of the total investments in the relevant project, the operation will free up at least €200 million in loans to Dutch businesses. According to the Commission, 7,500 entrepreneurs will benefit. The Dutch Ministry of Economic Affairs will guarantee 80% of the loan of €100 million from the EIP, and the remaining 20% will be guaranteed by the EFSI. The Commission goes on to explain that the EIF guarantee of €25 million will cover 50% of the credit risk run by Qredits, which will allow it to increase its loan volume substantially. Around 670 micro-businesses are expected to benefit. (Original version in French by Elodie Lamer)