EIB 'tightens business credit line'

1 November 2011

The European Investment Bank (EIB) has decided to make less money available for small business loans in the near future, it has been reported.

According to the Daily Telegraph, sources within the financial industry believe the EIB - the European Union's financing institution - is to tighten up the level of fluidity it permits for lending to organisations.

Throughout the global economic downturn, the institution has offered a vital line of support for high street banks by providing them with the necessary capital they need to then pass on and meet the credit demands of business customers.

For instance, in the last three years, financiers in the UK have borrowed in excess of £1.7 billion from the EIB.

However, it now appears that this trend will not continue to such a level, meaning high street lenders look set to be forced to look elsewhere.

An industry insider told the news source: "There is not as much money available this year and some of the terms have changed."

By Claire Archer

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