Skip to content

The Puzzle of Financial Instruments

Phedon Nicolaides

State aid statistics reveal that some Member States grant more aid in the form of financial instruments than in the form of risk capital/risk finance. This articles examines how this statistical discrepancy can be explained. It presents several possibilities: The aid in the financial instruments is not channelled through a fund managed by a financial intermediary and/or it does not seek to leverage private participation and/or it is primarily intended as a repayable grant. The article also examines the consequences of using financial instruments to provide repayable grants.

Professor at the College of Europe and University of Maastricht.
The author would like to acknowledge research assistance from Tony O’Connor.


Lx-Number Search

(e.g. A | 000123 | 01)

Export Citation