Basel accords could be revised to help SMEs, says Spanish Presidency
A revision of the Basel accords on banking provisions will be debated at the Ecofin council in Oviedo, Spain on 12 April, in a move designed to help SMEs (small and medium sized enterprises). The accords set out the provisions for loans and presently target SMEs, especially new ones, as high risk. This, coupled with the extra bureaucracy and costs required for SMEs to obtain loans (due to the need to assess each one individually), place an additional burden on those trying to start up innovative enterprises. The Spanish presidency sees the revision of these provisions as a possible step in helping innovation get a more secure financial foothold, although at this stage it is a matter for debate rather than firm measures. The Spanish director-general for SMEs, Isabel Barreiro added that this type of measure has the support of countries in the EU whose economies are dependent on SMEs, notably the UK and Italy. Possible revisions include banks make less provision for profit from SME loans. Any revision to the accords would need to be signed by 2003, coming into force three years later.
Kraje
Spain