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EIB LENDS SNCI LUF 700 MILLION FOR INNOVATIVE VENTURES IN LUXEMBOURG

Under its Amsterdam Special Action Programme (ASAP) set up last year to bolster growth and employment in Europe, the EIB is making available to Soci t Nationale du Cr dit l'Industrie (SNCI) 350 million Luxembourg Francs for on-lending in the form of subordinated loans to innovative SMEs to boost their capital base. SNCI will acts as co-investor in each operation and itself lend a matching amount to the final benificiaries, while sharing the credit risk with the EIB. The purpose of this operation is to strengthen the equity of SMEs through provision of custom-made risk-sharing financial instruments, thereby facilitating these companies' access to bank loans. A second operation, for an identical amount of LUF 350 million, is aimed at supporting small and medium-scale projects in industry and the service sector. These two operations will allow the European Investment Bank substantially to step up its action to promote productive investment in the Luxembourg economy, in close partnership with an intermediary offering a proven track record in this field. SNCI, for its part, is adding further to its range of operations to consolidate the capital base of industrial and service enterprises in Luxembourg, as well as underpinning their capital investment schemes. Also in this connection, SNCI, acting jointly with local commercial banks, has just established Soci t Luxembourgeoise de capital-d veloppement pour les PME, due to start up this Autumn.

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Publication:European Report
Date:Jul 8, 1998
Words:228
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