European Union Loan Guarantees Before and After the Covid-19 Crisis: Role and Impact

Julien BRAULT * Chercheur, Fonds européen d'investissement (FEI). Contact : j.brault@eif.org.Cet article a bénéficié des commentaires et ajouts de nombreux collègues. Que soient particulièrement remerciés Simone Signore (FEI), Helmut Kraemer-Eis (FEI), David González Martín (FEI), Gunnar Mai (FEI), Luís Broegas Amaro (FEI) et Elitsa Pavlova (FEI). Cet article a également bénéficié des contributions du professeur Massimo Gaetano Colombo (Politecnico di Milano, School of Management), du professeur Fabio Bertoni (emlyon Business School) et du professeur Anita Quas (Université de Milan). Toutes les erreurs potentielles de cet article sont uniquement le fait de l'auteur.Les opinions exprimées dans cet article sont celles de l'auteur et ne reflètent pas nécessairement la position du Fonds européen d'investissement ou de la Banque européenne d'investissement.

Loan guarantees played a central role in the fiscal response to the Covid-19 recession. A central question is whether they indeed produced the expected positive effects. We review existing empirical evaluations of the impact of loan guarantees, focusing on European Union guarantees between 2002 and 2016. The study confirms the notion that this policy supported the growth of small and medium-sized enterprises and reduced their bankruptcy rates. However, we also identify areas where this tool did not have a significant positive impact. These findings may be useful for the formulation of public policy and for assessing the effectiveness of loan guarantees in the aftermath of the Covid-19 crisis.