We have set a target of mobilising up to €40 billion to the impacted SMEs, through various products that we will make available to financial intermediaries (commercial banks, national promotional banks, guarantee institutions) immediately. In detail, this support is based on broadly three building blocks, some of these resting on various pillars of guarantees by the European Commission.
The three blocks are the following:
First, we will launch dedicated guarantee schemes to banks based on existing programmes for immediate deployment, mobilising up to €20 billion of financing by them to support the businesses in need.
Second, we would accelerate and repurpose our multi-beneficiary intermediated lending facilities and other framework loans so that banks across Europe could specifically come to the aid of impacted businesses. This would amount to €5 billion of EIB financing, which we expect to mobilise €10 billion to those companies.
Third, we plan to reprioritise some EFSI resources to make working capital available to those who need it the most through the purchase of €2 billion worth of asset-backed securities from banks. This allows banks to transfer risk of existing SME loans to the EIB, freeing up capital to give out new loans. This should also mobilise €10 billion.