EU Regulators to approve SME Loan Plan
13 March 2012
According to Reuters, Britain is due to gain EU regulatory approval this week for its £20 billion guarantee scheme to boost the flow of credit to cash-starved small- and medium-sized businesses.
The National Loan Guarantee Scheme, proposed by Chancellor George Osborne in November 2011, aims to cut the cost of borrowing for companies by providing government guarantees for banks' funding. The government hopes to see the private sector playing a bigger role in the economy in the future.
The European Commisson, which ensures a level competitive playing across all the EU countries, has been assessing the scheme in relation to compliance with EU state aid rules and approval is apparently imminent.