Financial engineering instruments : the way forward for cohesion policy support? Recent experience from the Baltic states
LTReikšminiai žodžiai: Baltijos šalys (Baltic states); Finansų inžinerija; Finansų inžinerijos priemonės; Rinkos nepakankamumas; SVV paskolų programos; Baltic states; Financial engineering; Financial engineering instruments; Market failure; SME loan programmes.
ENTraditionally, EU cohesion policy support to businesses and local authorities has almost exclusively taken the form of non-repayable grants or subsidies. However, in the current structural funds programming period (2007-2013), financial engineering instruments (FEIs) have emerged as a significant support mechanism in addition to grant assistance5. Thus, “in 2007-2013 the use of different modes of financial instruments has become more widespread. Financial instruments are quickly growing in variety, scope and amounts committed to them. In the 2014-2020 period an even wider application is envisaged – the financial instruments can be used in all policy areas where feasible” (European Commission 2012, p.1). Financial engineering instruments include the following: equity (venture capital), loans, loan guarantees, micro-finance, mezzanine finance and other forms of revolving assistance. The final recipients can be SMEs or other recipients of public funding, such as urban development funds and energy efficiency/renewable energy projects, and even individual citizens. [From Introduction]
