The European Investment Bank (EIB) and Belfius Banque have signed a new agreement for a EUR 200 million EIB loan to increase the volume of lending to SMEs and midcaps in Belgium. Thus, a total of EUR 400 million, half of which will be advanced by Belfius Banque, is now available to small and medium-sized enterprises. This new operation will renew an initial credit line for SMEs and midcaps, under which more than 1 500 projects were financed on preferential terms over an 18-month deployment period.
SMEs represent 99% of non-financial businesses in the European Union, generate almost 60% of value added (i.e. EUR 3.7 trillion; 2013 figures) and employ two-thirds of the labour force. As the cornerstone of economic recovery, SMEs have for some years been one of the core priorities of the EIB, which strives to provide them with access to affordable financing at all stages in their development, in order to contribute to their smart, sustainable and job-creating growth.
Improving access to finance for SMEs and midcaps
The agreement signed with Belfius is consistent with the EIB's policy of supporting the economic development of small and medium-sized enterprises by providing loans on preferential terms in order to stimulate job creation. This includes longer maturities, flexible repayment plans and lower interest rates. The loans provided under this agreement may be used to finance new projects and/or working capital requirements up to a maximum of EUR 25 million for SMEs and EUR 50 million for midcaps.
Belfius and the European Investment Bank concluded the initial agreement for improving access to finance for SMEs and midcaps at the end of 2013. This enabled them to finance together, under favourable conditions for the businesses, more than 1 500 projects in less than two years, representing a total investment of around EUR 550 million.
Following the conclusion, in July 2015, of a "SME InnovFin" guarantee agreement with the European Investment Fund to support innovative SMEs and last year's renewal of another guarantee agreement with the EIF for start-ups, Belfius Banque and the EIB Group are once again confirming their shared commitment to fully support small and medium-sized enterprises, which form the backbone of the Belgian and the EU economy.
At the signing ceremony, EIB Vice-President Pim van Ballekom, stated, "I am delighted with this new programme with Belfius. Promotion of small and medium-sized enterprises is a priority for the EIB. By combining our respective tools and expertise, we can provide our entrepreneurs with effective support. In this way, we are underpinning their competitiveness and growth and the economic dynamism which is vital for our economies."
Dirk Gyselinck, member of Belfius Banque's Management Board, added, "Thanks to this important agreement with the EIB, Belfius is particularly happy to help facilitate and improve the access of SMEs and midcaps to the financing required to develop their projects and activities and thus to support economic recovery and the creation of jobs in Belgium."