Easier credit to help unemployed people start up businesses

Published: 15 December 2009 y., Tuesday

Investicija
Legal measures to make it easier for people who have lost or risk losing their jobs to get credit to start up their own businesses were backed by the European Parliament on Tuesday.

A "European Progress Microfinance Facility" is to make available "micro-credits" (up to €25,000) to people who want loans to start or grow very small firms (10 people or less and a turnover of less than €2 million), but are unable to obtain them on conventional credit markets. 

Funding

Parliament agreed to make €100 million available for the Facility over four years - as proposed by the European Commission, but amended the draft legislation so that these funds do not have to come from the "Progress" programme, which was set up to help vulnerable groups of people. The Commission had proposed that the Microfinance Facility be funded from this programme, as it already had received an additional €114 million, at Parliament's request.

To ensure that the Facility can start in early 2010, Parliament agreed to release €25 million euro from the EU's 2010 budget, which will be put to a vote on Thursday. For the three remaining years, there is, for the moment, no agreement between Parliament and Council on the resources for the Facility. MEPs want funding decisions to be taken each year, when the EU budget for the following year is being drawn up, so as avoid having to reallocate funds from the Progress programme.

Functioning

The Facility is to be open to public and private bodies in the Member States that provide micro-finance to persons and micro-enterprises. It is to make the €100 million available to them over 4 years through joint management arrangements with the EIB group (European Investment Bank and European Investment Fund).

Entry into force

The Facility is scheduled to come into force in early 2010.

Parliament's amendments to the draft legislation were set out in a report by Kinga GÖNCZ (S&D, HU), approved with 516 votes in favour, 82 against and 4 abstentions.

Šaltinis: europa.eu
Copying, publishing, announcing any information from the News.lt portal without written permission of News.lt editorial office is prohibited.

Facebook Comments

New comment


Captcha

Associated articles

The most popular articles

EBRD makes equity investment in Croatian geodetic company

The EBRD is making a €4 million equity investment in Geofoto, a Croatian geodetic company offering mapping, geodetic survey, photogrammetry, geoinformatics and aerial survey services, to support its drive to expand operations on international level. more »

Strong year - risk-adjusted profit up 22%

Nordea came out of 2009 in an even stronger position, despite one of the most challenging years for decades. Risk-adjusted profit increased 22% and our capital position and cost of funding are among the best in Europe. more »

Small business start-ups by the unemployed: deal agreed on funding

MEPs gave the green light on Thursday for EU funding to help Europe's unemployed start up small businesses. more »

Yemen: international efforts needed to prevent crisis escalation

MEPs are deeply concerned about the long-standing and growing presence of al-Qaeda, and the deteriorating security, social and economic problems in Yemen, which they think could destabilise neighbouring countries. more »

Africa: Fighting the Global Economic Crisis through Private Enterprise, Innovation and Integration

At the start of a new decade, Sub Saharan Africa is reeling from the effects of three major global crises – food, fuel and financial – that have reversed many of the economic achievements of the last 10 years and left some growth projections at levels below those of 30 years ago. more »

5th High-level Seminar of Central Banks in the East Asia-Pacific Region and the Euro Area

The 5th High-level Seminar of Central Banks in the East Asia-Pacific Region and the Euro Area was jointly organised by the European Central Bank and the Reserve Bank of Australia, in cooperation with the Hong Kong Monetary Authority. more »

EBRD and EFSE support micro and small businesses in Moldova

The EBRD and European Fund for Southeast Europe are boosting the availability of financing to private businesses in Moldova with a $10 million loan to ProCredit Bank in Moldova for on-lending to micro and small enterprises. more »

EBRD finances new shopping centre in Croatia

The EBRD is supporting the development of the retail infrastructure in Croatia with a €68 million loan to finance the construction of a modern shopping centre in Split, the second largest city in Croatia. more »

EBRD agrees to sell 15 percent stake in Swedbank’s Russian banking arm

The European Bank for Reconstruction and Development has agreed to sell its 15 percent stake in OAO Swedbank Russia to its parent and major stakeholder, Sweden’s Swedbank AB, a move which would give it full ownership of its Russian subsidiary. more »

Ministers of Industry agree that the European Commission should promote a common strategy on electric cars

The Ministers of Industry took the first steps in San Sebastián today to make the electric vehicle a reality in Europe and agreed that European institutions, with the EC at the head, should lead a common strategy on electric vehicles. more »