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Image header Agence Europe
Europe Daily Bulletin No. 9816
Contents Publication in full By article 20 / 28
GENERAL NEWS / (eu) eu/eib

“New generation loans” to SMEs in United Kingdom

Brussels, 12/01/2009 (Agence Europe) - The European Investment Bank (EIB) has just signed three new generation (EUROPE 9806) EIB loans for small and medium sized enterprises (SMEs) in the UK for a total of £650 million (€720 million). Three UK banks - Royal Bank of Scotland (RBS), Barclays Bank and Bank of Scotland (HBOS) - will act as financial intermediaries for the EIB funds, passing them onto SMEs with projects which further EU policy objectives. In a press release published on 8 January, the EIB indicated that the three loans were signed during December and SMEs should start to benefit from EIB finance early in 2009. The EIB also emphasised that the new generation loans ensure that the final recipients - the UK small firms - benefit from the financial advantage offered by EIB funds. RBS is borrowing £250 million from the EIB directly to benefit smaller firms. Barclays has traditionally been one of the EIB's key financial intermediaries and will borrow £150 million. In November 2008 Barclays agreed a £200 million credit line to promote investments in the further education sector. HBOS secured a £250 million EIB loan which will be dedicated to financing SME investments throughout the UK and Ireland throughout the industrial and service sectors. (O.L./transl.rh)

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