EIB backs ABS guarantees to spark wider SME lending

By Tom Porter
23 Oct 2014

The European Investment Bank has said public sector guarantees could kick start ABS volumes in Europe and potentially double the size of the market, which it said was critical to improve small and medium-sized lending in some countries where SME ABS is “non-existent”.

“Strategic investment by the public [sector] could have a catalytic effect,” the EIB said in a report titled ‘Unlocking lending in Europe’, published on Thursday.

“Public support could potentially play a critical role in providing initial momentum for a Europe-wide market in SME loan-backed securities. National and European ...

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