EU allocates more cash to help small businesses join green transformation

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A significant slice of the €2.9 billion rise in share capitalization for the EU agency tasked with lending to small businesses is expected to be devoted to the green transformation of the bloc.

The EU-member-state-owned European Investment Bank (EIB) on Friday announced the share capitalization of the European Investment Fund (EIF) it holds a 62% stake in, will rise from €4.5 billion to around €7.4 billion.

The added financial muscle is expected to enable the EIF to play a big role in the bloc's InvestEU program, and particularly its focus on driving green and digital transformations.

European Commission executive VP Valdis Dombrovskis, quoted in an EIB press release on Friday, said of the move: “This means that the EIF will be fully equipped to implement the InvestEU program, to help EU businesses in emerging out of the [Covid-19] crisis, and to support the green and digital transformation of the EU economy.”

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