Brussels, 09/03/2009 (agence EUROPE) - FEMIP (The Facility for Euro-Mediterranean Investment and Partnership), which handles loan activities in the Mediterranean region within the EIB (European Investment Bank), held a conference in Rabat on Friday 6 March, on the subject "Mediterranean SMEs' needs along the business life cycle". This fifth conference on aid to SMEs brought together representatives of the business and banking communities, and of various national and international bodies.
The debates confirmed an initial observation which has been repeated many times in the past: it focuses on the difficulty experienced by SMEs in obtaining credit, a situation which is likely to be made worse by the current crisis. "Small businesses are the pillars of growth and job-creation on both sides of the Mediterranean. However, on the north shore and south shore alike, they are finding it hard to obtain loans from banks to fund development and exploit their full potential". "The development of SMEs is a major factor", which was "retained as one of the six priority objectives of the Union for the Mediterranean", stated the EIB, which reports a volume of loans standing at €1.5 billion since 2002. It observes that "the fact that banks are currently becoming more fragile has accentuated the problems of SMEs in obtaining funding, threatening entire economies". It hopes to repeat what it has done in Europe by launching a "mass support plan for the funding of SMEs" and to debate the possibility of a similar plan for the Mediterranean.
The conference concluded on four recommendations - "improving information for SMEs on funding available from banks, laying emphasis on procedures, as current practical details are felt to be the complex. In this regard, it would also be helpful to improve circulation of information between commercial banks, SMEs and public authorities by means of regular meetings and round tables"; - "diversifying the actions" of FEMIP and "introducing guaranteed products, helping small businesses to invest in research and development and to develop themselves on an international level"; - channel migrants' savings- estimated at between €12 and 14 billion every year- to be used to fund development. The EIB is in touch with nine European and Mediterranean banks to develop adequate financial products; - "helping to modernise the local banking system by means of better training in banks". (F.B./trans.fl)