Brussels, 11/12/2000 (Agence Europe) - In the framework of their action in favour of the development of small and medium sized enterprises (SME) in the candidate countries of Central and Eastern Europe, the European Commission and the Council of Europe Development Bank (CEB) have decided to allocate an additional EUR 134 million to the present Commission programme aimed at facilitating the financing of SMEs in these countries. The programme is undertaken in association with a German banking institution the "Kerditanstalt fur Wiederaufbau" (KfW), which has as vocation to encourage economic development. An agreement between the three institutions was signed in Monday in the presence of Commissioner Gunter Verheugen responsible for enlargement negotiations.
The EU support for SMEs in candidate countries since 1990 in the framework of the PHARE programme, notably in the form of technical assistance. The CEB has financed over the last few years job creation and job maintaining programmes in the SME sector, in particular in the new German Lander, in Hungary and the former Yugoslav Republic of Macedonia (FYROM). The KfW is also encouraging the development of SMEs in the candidate countries by opened up credit lines for them in association with local financial establishment specialised in loans to SMEs.
Commissioner Verheugen, on the sidelines of the agreement signing, underlined the crucial role of a powerful web of SMEs for economic development, employment and proper preparation of candidate countries for the accession to the EU. "The facility forms with regard to this an important instrument to give SMEs a better access to micro and small financing, and thus to ensure sustainable economic growth and the satisfaction of the Copenhagen economic criteria", said the Commissioner.