The Innovative Enterprise Conference took place recently in The Hague, where there was the creation of a new EU Secruritisation Instrument for European banks. This creation was announced by Commissioner Carlos Moedas, EIF Chief Executive Pier Luigi Gilibert and EIB Vice-President Pim van Ballekom. The SME Initiative Securitisation Instrument (SISI) is being launched by the European Commission, European Investment Fund (EIF) and European Investment Bank (EIB) and it is supposed to enable more lending to SMEs at favorable prices.
As described in one article, “EIF will implement the instrument through securitisation transactions with the aim to stimulate new SME financing. This will be achieved by facilitating the partial transfer of the credit risk of securitised loans by providing guarantees and/or through the purchase of asset-backed notes in order to release regulatory and economic capital for the originating financial institutions which will be then used to originate new financing (in the form of loans, leases and guarantees) to SMEs at advantageous pricing terms.”
Learn more with the article in full here.