Billions in EU cash intended for small businesses being hoarded by banks instead

Billions in EU cash intended as loans for small businesses in eastern Europe who have been bludgeoned by the economic crisis have instead been hoarded by intermediary banks.

In 2008, evidence began to mount of how small and medium-sized businesses were being cut off from access to loans as a result of the credit crunch.

In response, European finance ministers unveiled a stimulus package that involved rapid deployment of €15 billion in loans via the European Investment Bank express...