State aid: Commission approves measure allowing the creation of a new development finance institution in the Netherlands
Daily News 29 / 05 / 2020
Source: European Commission Spokesperson's Service
The European Commission has approved, under EU State aid rules, Dutch plans to set up a new development finance institution named “Invest International”. Invest International will be set up as a joint venture between the Dutch State and the existing Dutch development finance institution FMO. The Dutch State would grant start-up capital of up to €800 million and provide yearly subsidies of €9 million. Invest International will have as objectives to support the foreign trade and international cooperation objectives of the Dutch authorities by supporting entrepreneurs and international projects in low-income, lower-middle-income and upper-middle-income countries. The scope of Invest International’s activities will provide additional financing to companies and projects that otherwise remain underfinanced because of market failures. Concretely, Invest International will focus on improving access to finance to small and medium-sized enterprises (SMEs), certain small-midcaps and local public authorities for the execution of projects that are in line with Invest International’s objectives. The Commission found that the creation of Invest International is an appropriate and proportionate solution to provide additional financing to companies and projects that otherwise remain underfinanced because of market failures. Furthermore, Invest International will implement safeguards to ensure that the state-supported institution does not crowd out private financial institutions. On this basis, the Commission concluded that the measure is in line with EU State aid rules. More information will be available on the Commission's competition website, in the public case register, under the case number SA.55465.