Public sector urged to step up funding help for small firms
Friday 14 June 2013
Europe’s small and medium businesses have seen their cash flow dry up since the recession, a study said today. Banks are reducing lending and private investors are reluctant to step in, it found.
The report, by the Association For Financial Markets in Europe and consultants Oliver Wyman, called for the public sector to do more to help SMEs, with policies to encourage private investors such as insurance companies and asset managers to invest in businesses.
Methods suggested include promoting private placements, where debt is sold directly to large investors without a market auction, and securitisation, where loans are bundled and sold on to outside investors.
Both these methods are common in the US but less so in Europe. The AFME said the measures were necessary to get private investors lending to SMEs.
The report said: “The majority of non-bank investors interviewed did not have appetite to lend directly to SMEs as it did not fit with their business models.
“Solutions therefore focus on selectively increasing public-sector support where banks do not have the capacity or risk appetite to lend.”
The AFME, which also called on the European Investment Bank to provide more support, plans to present its report to Europe’s policymakers in the coming months. The study looked at 75 representative businesses across Europe, industry groups and AFME members.
peopleContenders for Time magazine's Person of the Year are a mixture of the good, the bad and the holy
newsAs the world remembers Mandela the hero, the prison where he spent 27 years seems all the more brutal
tvSteven Moffat reveals the actor was dying to take on the role of the Time Lord and says he is excited to see what he will do with the character
sportBayern Munich 2 Manchester City 3: City come from two down to beat reigning European Champions
arts + ents... and a chance to paint Booker Prize winning author Hilary Mantel
danceUnder Tamara Rojo's inspired direction, it seems possible that it could challenge the dominance of the Royal Ballet. We meet some established names and rising stars
travelDiscover Uruguay's jet-set beach resort, an Atlantic enclave with plenty of art and culture to explore on the side
The ten coldest places on Earth
Sir Ian McKellen hits back at Damian Lewis' 'fruity actor' claims
Kenyan politician Mike Sonko left red-faced after photoshopping himself next to Nelson Mandela
Krokodil in Mexico? Teenager hospitalised after 'injecting drug into her genitals'
Nelson Mandela memorial: Cheers, jeers and a masterclass from Barack Obama that stole the show
- 1 It’s shameful that our universities have accepted gender segregation under pressure from the most oppressive religious fanatics
- 2 Sir Ian McKellen hits back at Damian Lewis' 'fruity actor' claims
- 3 Kenyan politician Mike Sonko left red-faced after photoshopping himself next to Nelson Mandela
- 4 Selfie at funeral: Cameron squeezes in on Obama snap at Mandela memorial
- 5 Is Facebook making us forget? Study shows that taking pictures ruin memories
- < Previous
- Next >
iJobs Money & Business
£50000 - £65000 per annum + BONUS + BENEFITS: Harrington Starr: A leading mark...
£60000 - £85000 per annum + BONUS + BENEFITS: Harrington Starr: A leading asse...
£45000 - £70000 per annum + Bonus + Benefits: Harrington Starr: Technical Impl...
£65000 - £90000 per annum + Bonus + Benefits: Harrington Starr: Rogue Trading ...