Source: Tanjug | Monday, 23.10.2017.| 08:44

EIB presents study of SME sector's need for financing

Illustration (Photo: PORTRAIT IMAGES ASIA BY NONWARIT/shutterstock.com)
The European Investment Bank (EIB) has performed a study analyzing the need for establishing alternative financial instruments for helping micro, small and medium enterprises.

The study, which aims to identify the needs of micro, small and medium enterprises and entrepreneurs for financial instruments, points to the discrepancy between the banking system and the sector's financial needs, the Ministry of Economy reported.

– Our aim is to see where we stand, to identify problems, but also to find potential solutions – the assistant to the minister of economy, Katarina Obradovic Jovanovic, said at the presentation of the study at the MP Club.

The results of the study, presented by Emily Smith of the EIB and Marco Giuliani of the European Investment Fund (EIF), show that the access to banking products is limited for smaller enterprises, especially micro ones, as banks require a good credit history, a relatively large turnover, low debts and sufficient capital in approving loans.

The results of the study also encompass the identification of the most needed financial products and instruments for the sector of small and medium enterprises and entrepreneurs, the quantification of the unmet needs of SMEE and a proposal of the manners of carrying out the financing based on market analysis.

The study proposes three models, among which is the guarantee scheme for which EUR 20 million has already been set aside from the IPA funds and which will cover a part of the risk banks incur in crediting SMEE, the press release says.

Another one of the three models is technical help to SMEE in the form of consulting services, which should help companies consider all financial possibilities and prepare financial strategies in line with their individual needs.
Only logged-in users can comment.