OREANDA-NEWS. The EIB and the European Commission have agreed to launch a Risk Capital Facility for the Southern Neighbourhood Countries.

The Risk Capital Facility will initially be provided with a total amount of EUR 142.5m, of which the European Commission will contribute EUR 50m (EUR 47.5m for Financial Instruments and EUR 2.5m for Technical Assistance) through the Neighbourhood Investment Facility (NIF).

The aim of the Risk Capital Facility is to pool public and private resources for the financing of private equity and venture capital funds and microfinance institutions, with the purpose of providing financing to local micro, small and medium-sized enterprises (SMEs) in the Southern Neighbourhood.

The Risk Capital Facility will provide access to equity and debt financing to SMEs in order to support private sector development, inclusive growth and private sector job creation.