The European Investment Bank (EIB), the European Union's financing institution, announces a EUR 50 million loan to Crédit d'Équipement des PME (CEPME), a 97%-owned subsidiary of Banque du Développement des PME (BDPME), designed to promote the funding of small and medium-sized enterprises (SMEs).
In providing long-term resources at the keenest market rates, the EIB will enable BDPME to expand its role in financing capital goods for SMEs. By building on the banking partnerships forged by BDPME with 400 banking institutions in France, this operation will also further mobilise sources of finance for this category of business, facilitating and underpinning their productive investment.
This loan follows on from a similar earlier operation in November 2001, for the same amount, which was deployed in full under conditions illustrating the excellent catalytic effect of funding from the EIB, BDPME and the banking sector in favour of small French enterprises. The first EIB credit line led to the financing of schemes, the majority of which were mounted by SMEs with fewer than 49 employees and primarily located (60%) in the least privileged regions of France. In all, joint EIB/BDPME financing will have contributed to capital investment totalling over EUR 113 million.
This loan forms part of the EIB's endeavours to improve the financial environment for SMEs in Europe, an objective to which, in 2002, it devoted more than EUR 6.2 billion in long-term loans and EUR 471 million in venture capital. Acting in close partnership with Europe's financial and banking community, the EIB Group - consisting of the EIB and the European Investment Fund (EIF), its specialist subsidiary for the provision of venture capital and guarantees in support of SMEs - is able to offer European small businesses the full range of financing instruments required to ensure their development and adaptation to new technologies.
In France, in 2002, the EIB Group participated in financing 4 500 ventures undertaken by SMEs and invested in some 10 venture capital funds specialising in both start-up capital and development capital for innovative SMEs.