Economic
After many unknowns and months of waiting, the Financial Institution Development (IFD), or ‘development bank’, finally got the green light to move forward. The Bank of Portugal has assigned a banking license to the future entity and the government approved the ordinance that was lacking for the operation start in the last quarter of the year, the steps that were missing for the project to materialize. This is good news for the market and in particular for small and medium enterprises (SMEs) at this stage, need funding and bread on the table. With an initial capital of EUR 100 million and an administration based in Oporto, the new bank will aim to leverage incentives and financing, including European funds for companies. If fulfill this mission and mobilize at least an amount of EUR 1.5 billion in that sense – at least that is the expectation of the Minister of Economy – this could be a breakthrough in economic recovery. First, because it offers many alternatives capitalization companies today see hampered financing lines of retail banking access. And then because the involve own commercial banks, may be another factor boosting the financial sector. The success of this project, already tested with other examples, such as the German KfW, is now in the hands of a management team that has necessarily to mobilize and activate the financing, but never forgetting its purpose: the development of the market and the economy – or will not truly a development bank .
No comments:
Post a Comment