The Portuguese government has approved the creation of a development bank to provide funding to small and medium-sized enterprises in the country, according to a statement issued following a Council of Ministers meeting on Monday.

"The Council of Ministers approved the creation of IFD, Instituicao Financeira de Fomento, S.A. and its respective articles of association," said the Council of Ministers statement issued on the Portuguese government website.

"IFD is intended to fill gaps in the financing market for small and medium-sized companies, particularly in terms of capitalization and long-term business funding," said the statement.

According to local press reports, the Bank of Portugal granted a license for IFD last week, some three months after the bank's installation committee handed in its proposal to the central bank. The new bank is expected to have starting capital of 100 million euros (about 129 million U.S. dollars).

The bank's installation committee, headed up by Paulo Azevedo Pereira da Silva, former director general of Millennium BCP bank, proposed a board of directors with up to five executive members and up to three non-executive members. Enditem

Go to Forum >>0 Comment(s)