The Welsh Assembly Government is considering a corporate restructuring of its investment subsidiary, Finance Wales PLC.
Finance Wales – currently a 100% owned subsidiary of the Assembly Government – was formed in 2001 to provide commercial funding to SMEs in Wales.
Since its launch, Finance Wales has invested around £150 million through 2,200 investments, and leveraged an additional £342 million in private sector investment.
In the last year alone, and as part of the Assembly Government’s support for businesses through the recession, Finance Wales has invested £26 million in Wales-based SMEs – a 25% increase in investment levels compared to the previous year.
Following discussions with HM Treasury, work is now underway to consider whether a corporate restructuring of Finance Wales would provide an improved investment vehicle for Wales-based SMEs.
One of the changes under consideration may result in Finance Wales no longer being classed as a public corporation in Government accounting terms. This change could enable Finance Wales to secure additional forms of private capital from a wider range of sources to support SMEs in Wales.
The Deputy First Minister, Ieuan Wyn Jones said:
“Over the past 10 years, Finance Wales has provided invaluable support to businesses across Wales. As we move out of a global recession, we are committed to providing enhanced support to ensure businesses in Wales continue to have every opportunity to develop.”
Minister for Business and Budget Jane Hutt said:
“Any change to the current structure and status of Finance Wales will be designed to deliver enhanced and more sustainable support to businesses as Wales emerges from the global recession.”
For more information on Finance Wales visit http://www.financewales.co.uk/
