Financial instruments have a long history is some European countries’ investment support schemes through their National Promotional Banks and Institution, and they have come to play an important role in the EU budget as well. Indeed, financial instruments boast several benefits due to:
- The revolving nature of the funds: financial instruments enhance the sustainability of public investment as the funds allocated to the support schemes can be recycled for future use;
- The leverage effect: financial instruments leverage private and public funds, thus increasing the amount of money available;
- The incentives for better performance: by sharing the risk involved and the repayable nature of the financial instruments, project promoters demonstrate greater financial soundness.In addition, financial instruments may complement grant financing and other support to achieve Union policy objectives and contribute to Europe’s economic growth and jobs creation.

 

Sursa: https://innoenterprisebucharest2019.eu/programme-21st-june.html