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Brown calls for small firm funding from EIB

Oct 30 2008

Prime minister Gordon Brown has called on the European Investment Bank (EIB) to increase lending to small businesses.

Brown says the UK needs to look at 'innovative forms of finance' to aid small firms in the downturn, including working with international partners.

An announcement is due to come today from chancellor Alistair Darling and business secretary Peter Mandelson who will reveal the EIB is to issue an additional £4 billion which banks can apply for.

The prime minister says this in turn will leave the financial institutions with 'little excuse' not to resume lending to small and medium-sized firms.

Brown says: 'We urge banks not to change the terms and charges for existing lending to small businesses in our country.'

Darling yesterday stated the importance small firms have to the UK, saying they are 'vital to the strength of our economy'.

He adds the government will do 'everything necessary' to enable these companies to stay in business.

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