A cash boost for Welsh small firms from Euroland

One of the High Street banks is also putting up the �21m in backing matching the EU funds.

The bank's identity will be revealed later on Monday.

Finance Wales is a pillar of the assembly's strategy for the economic regeneration of west Wales and the south Wales Valleys.

It should allow the Welsh Development Agency to help smaller businesses to expand and create jobs.

Objective One funding is Europe's highest level of economic aid but the assembly executive had been under fire from business leaders for not fully involving the private sector in the various schemes and initiatives the project has generated.

First Minister Rhodri Morgan said he could now deliver a body that business in Wales has been asking for over the past 30 years.

He said it should provide an investment fund for home grown enterprises that would be too small to attract the kind of grants awarded to multinationals.

Last week Mr Morgan urged Welsh businesses to be ready for the introduction of the Euro in the new year.

European exports

Exports to EU countries are worth more than �4bn to Wales but even before the 11 September terrorist atrocities observers were predicted a bumpy ride the Welsh economy.

In June Assembly Members were told that even the most positive of predictions still fell short of expected growth in the rest of the UK.

Since then Wales's tourism industry is predicted to take a loss of revenue amounting to around �280m by the end of the year due to the combined effects of foot-and-mouth and 11 September.

Finance Wales has a strategy of helping 120 firms start up in business during 2001, but is likely to achieve only around 25.

The latest report to the assembly's economic development committee refers to the need for "a greater increase in the number of new business start-ups".

Objective One

Across Wales, the target for the number of start-ups in 2001 is 4,240.

However, the forecast is that Wales will see only around 3,600 new firms.

In the areas covered by Objective One, the target is to help create up to 3,100 new businesses.

It is thought the number realised will be nearer 2,400.