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“With an envisaged dedicated budget of 1.4 billion euros ($1.65 billion), the new product is expected to mobilise at least 13 billion euros of new lending to small and medium-size enterprises (SMEs) affected by the outbreak,” the European Commission said in a statement.
Under the new instrument, the EIB Group, acting as a protection seller, will provide a financial intermediary with a guarantee on a specific risk tranche for a portfolio of existing assets, under the condition that the portfolio in question fulfils certain requirements in terms of maximum size and contains only performing exposures, the EU executive said.
