Development package initiated to improve financing opportunities for SMEs
12 March 2012
The Danish government and the opposition parties in the Danish parliament have reached an agreement on a development package which will improve access to financing for Danish small and medium-sized enterprises, reports the Ministry of Business and Growth in a public statement
The economic recession has made it increasingly difficult for small and medium-sized companies to get loans and capital from banks. The financial institutions have made significant losses on issuing and lending. As a result, the financial sector is more hesitant to invest and issue loans which, given the SMEs’ limited net capital, makes financing opportunities difficult to obtain.
The package will improve financing by at least DKK 20 billion and issue export guarantees for DKK 20 billion.
- Small and medium-sized enterprises are essential for growth and employment in Denmark, but many have difficulty obtaining financing from banks in order to realize their plans for development and exports. With the initiatives in this package we will strengthen the access of SMEs to growth capital and export financing and turn the focus away from disposal and onto development. The package will improve financing by at least DKK 20 billion and issue export guarantees for DKK 20 billion . This would be good for the Danish economy, says Ole Sohn, Minister for Business and Growth.