Urgent Backlog: EU Financing of SMEs in Asian Countries

Though Asian Countries are of increasing importance for the European Economy, the EIB European Investment Bank owned by the Countries of the EU, granted up to date no global loans for Bangladesh, Republic of Korea, Malaysia, Nepal, Singapore and Thailand.

The Permanent Representatives of WASME World Association of Small and Medium Enterprises to UNIDO United Nations Industrial Development Organisation, Ms. Susanne Forstinger and Norbert W. Knoll-Dornhoff, presented on occasion of the 33rd Session of the IDB Industrial Development Board of UNIDO from 25. – 27.June 2007 at the V.I.C. in Vienna a study sponsored by HELVETIA INTERNATIONAL MONTRES, disclosing an urgent backlog of EU financing of SMEs in Asian developing countries.

In the framework of a total budget in the last five years in the amount of approx. 2 billion EURO for the ALA Countries (Asia, Latin America and Caribbean), only 125 million EURO can directly be attributed to direct lending for SMEs. The most important financial instrument of EIB are the so called Global Loans which are disbursed via EIB authorised Financial Institutions (Fis) as beneficiaries to SMEs. The major part of such Global Loans have been used for oil, gas, mining, dam and industrial projects – sectors that may be economically viable for the EIB but mainly benefit subsidiaries of EU companies. Only a small fraction of the EIB budget went to the SME sector.

SMEs in African Countries were compared to the ALA Countries much better financially supported by EIB: Of 19 Global Loans in the years 2001 to 2007, 16 loans were allocated in African Countries and the Caribbean, only 1 (one) loan in Latin America and only 2 loans in Asian Countries, Only in 4 (four) of 17 Countries the EIB has appointed authorised Financial Institutions.

In side meetings with Delegations of the unprivileged Asian Countries, the WASME Representatives recommended that updated information shall be sent to the WASME Mission to UNIDO in Vienna about the actual financial needs of SMEs in their countries, that Financial Institutions shall be nominated seeking authorisation of EIB as partner institutions and call for projects viable for SMEs to be realised with the financial support of EIB.

The Austrian Delegate at the IDB session of UNIDO, Mr. Gerhard Burian, Director in the Federal Ministry of Economy and Work, welcomed the initiative of the WASME Mission and recommended the UNIDO Member Countries to take advantage of the service offer of WASME to assist in raising finance for SMEs in the Asian developing countries.

WASME World Association for Small and Medium Enterprises is an International Civil Society Organisation accredited in Consultative Status at UNIDO United Nation Industrial Development Organization. The Permanent Mission WASME to UNIDO represents the interests of Small and Medium Enterprises at UNIDO and those of the WASME Member Organisations.

Permanent Mission WASME to UNIDO
Bujattigasse 13, 1140 Vienna
Office for Hungary:
Garas utca 22, 1026 Budapest
Dr. Norbert W. Knoll-Dornhoff
Permanent Representative WASME

This release was published on openPR.