EU funds for SMEs in new member states

The Commission has
launched a new €36 million programme to assist the funding of SMEs
in the new member states.

The commissioner for enterprise and industry,
Günter Verheugen, has announced a programme of “preparatory action
on support for SMEs in the new financial environment”. It is
designed to encourage local banks and credit institutions, in
particular in the new member states, to give loans to SMEs by
providing credit lines or guarantees through a network of
international financial institutions such as the European Bank for
Reconstruction and Development, the European Investment Bank and
the European Investment Fund. The programme, announced on 10 Jan
2005,  allocates the first €6 million to go towards technical
assistance and capacity-building in countries where the level of
bank lending is currently low.

The programme recognises that 90% of
European businesses are small enterprises, that they make
an important contribution to the EU economy and the fact that
they often face difficulty in obtaining funding through lack of
confidence by lending institutions.

Commissioner Verheugen said: “From my experience
of EU enlargement, I know that particularly small businesses in new
member states often struggle to obtain financing. Our initiative
will help entrepreneurs to create and develop businesses and
jobs.”

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