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MISSING IN ACTION/ THE WINNERS, THE LOSERS AND THE UNKN...

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Missing in action/ The winners, the losers and the unknowns of the European Investment Bank's anti-crisis SME offensive in central and eastern Europe

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Missing in action/ The winners, the losers and the unknowns of the European Investment Bank's anti-crisis SME offensive in central and eastern Europe



Publisher: CEE Bankwatch Network

Date: November, 2010

Volume: 39 pages, pdf

Description

In the autumn of 2008, the full impact of the global financial crisis was felt around the world and it brought unexpected and deep levels of hardship to almost all economies. One of the manifestations of the crisis was a widespread downturn in the ability of businesses to access finance due in part to the loss of confidence experienced in financial markets. As a crisis response and at the urging of the EU’s finance ministers, the EIB announced a stimulus package which included the immediate deployment of an additional 15 billion to its 'global loan' lending in order to help support the small- and medium-sized enterprise (SME) sector across the EU. Global loans are a form of funding which, unlike the EIB’s standard project financing, is provided to third party intermediaries (predominantly commercial banks), who then lend out the funds along with their own contribution to borrowers. The borrowers are advised that part of the loan has come from the EIB and the loans themselves carry certain financial benefits which the intermediary banks must pass on and advise to the beneficiary.