Significance and Role of Mezzanine Financing in the Economy Cover Image

Mezanínové financovanie – jeho význam a úloha v ekonomike
Significance and Role of Mezzanine Financing in the Economy

Author(s): Jozefína Hvastová, Bohuslava Mihalčová
Subject(s): Economy
Published by: Ekonomický ústav SAV a Prognostický ústav SAV
Keywords: food deserts; Bratislava; accessibility measure; supermarket and hypermarket; public transport

Summary/Abstract: Mezzanine finance is a term for hybrid forms of finance. It has features of both debt and equity. Mezzanine finance instruments have been gaining in importance but remain little used compared to classic loan financing. The significance of mezzanine financing becomes more important when it comes to SMEs, which are the backbone of the European economy. SMEs often do not meet the criteria to obtain mezzanine finance or they do not have access to it. However, the problem is up-to-date. This paper focuses on definition, purpose and use of mezzanine finance in European region. In detail this article analyses the application of mezzanine finance for different classes of SMEs. Finally, it points out the significance and role of mezzanine finance and compares its advantages and possible disadvantages.

  • Issue Year: 56/2008
  • Issue No: 10
  • Page Range: 973-986
  • Page Count: 14
  • Language: Slovak