In a novel approach to help Europe emerge from the doldrums, the European Bank for Reconstruction and Development is considering programs for small businesses. These programs include but are not limited to direct lending and other means, according to its president.

The lack of funding available for loans and credits in Europe is what is causing worries in the European Central Bank and the International Monetary Fund. This is one of the pinpointed causes for the delay in the recovery for Europe as a whole.

According to EBRD President Suma Chakrabarti in a news conference after the annual meeting of the EBRD, it was a questionof 'how to do more (for small and medium sized enterprises) in a way that maximizes job impact and growth.' 

He added, "What's the right balance... do we go through the banks more or do we do a more direct approach?" 

Banks all across Europe have plenty of cash and are highly liquid but are reluctant to offer lending because of the spectre of another global financial crisis as well as increased regulation.