Europe Needs to Revitalize Finance for Small and Medium Enterprises

Increasing access to finance for small-and-medium (SME) enterprises is vital for Europe to support a firm recovery and enhance the growth and employment outlook, according to a recent seminar on SME financing. As the euro area recovers slowly from the financial crisis, banks remain weighed down by bad loans and need to raise additional capital. In many countries, small- and- medium enterprises—which account for the bulk of employment in Europe—face difficulty in getting credit. This was the theme of a high-level seminar on “Unlocking SME Financing in Europe and the Role of Capital Markets,” held in Brussels during October 22-23 and co-hosted by the International Monetary Fund (IMF) and the European Investment Bank (EIB).