- Acasa

- Fondul European de Dezvoltare Regională

JEREMIE

experience has shown that this is an area where the programme authorities would like to do more, but they lack both expertise and access to risk capital. JEREMIE, by creating a framework for cooperation with the specialised financial institutions, the EIF and EIB, as well as other international financial institutions, is designed to help to overcome these difficulties.

Why JEREMIE?

- Enhanced Access to finance for SMEs in the regions is needed

- Renewed Lisbon Strategy and CSG stress the need to enhance:
- market driven
- sustainable
- financial products and instruments for SMEs

Main Actors of JEREMIE

- Commission: DG REGIO

- EIF + EIB (EIB as loan capital provider)

- Other IFIs, like the EBRD for 8 new MS, the Council of Europe Dev. Bank (CEB)

- Other specialized financial intermediaries, I.E. KfW (DE), Caisse des dépots (FR),etc Banks, investors

- MS, Regions and managing authorities

- National and regional banks and financial intermediaries, investors

- SMEs, including
- Micro credit (up to 25.000 EUR)
- beneficiaries

JEREMIE PHASES

Phase 1 : Preparation
- Evaluations (2006-2007)
- Programming

Phase 2: Systems
- MA selects Holding Fund
- MA contributes to Holding Fund
- HF selects Financial Intermediaries
- HF contributes to fin. intermediaries

Phase 3: Implementation
- Financing:
- SMEs
- micro-credit beneficiaries
- Closing OPs
- Recycling OP resources

Evaluation

- Is carried out by the EIF in close cooperation with the regions, in 2006 and 2007

- EIF is assisted by Commission -DG REGIO services:

- DG REGIO: B1 + Operational Desks + Evaluation Unit

- Evaluations, including Interim reports produced in 2006, will be freely available to:
- MS, Regions-managing
- authorities –Interested holding funds
- and financial intermediaries
- Associations of SMEs,
- Chambers of commerce, etc

Who Finances the Evaluation?

- ERDF- Commission technical assistance credits will cover 75% of the cost

- EIF will cover 25% of the cost
- Total Budget for 2006: 3.5 million €

Phase 1: Programming

- interim evaluations reports available in 2006

- Competent national authorities use conclusions and proposed action plan of evaluations ( interim reports) when they elaborate programmes

- DG REGIO negotiates programmes based on evaluations – interim reports

SYSTEMS: Selecting Holding Fund-option 1

- Member States or managing authorities wishing so, can award directly the holding fund tasks to the EIF

- A funding agreement must be negotiated and signed in this respect between MA and EIF

SYSTEMS: Selecting Holding Fund-option 2

- Tendering by MS or MA for the selection of holding fund

- MS or MA sign a funding agreement with holding fund

- EIF willing to respond to tenders, alone or with IFIs/local financial institutions

SYSTEMS: OP contributes to Holding Fund

- OP contributes to the H F for ALL types of financial products

- Such contributions are eligible for interim ERDF payments ( art 78 - new gen. reg)

- Such contributions, when reimbursed by the ERDF, are IRREVERSIBLE for the period 2007-2015

- Supplementary contributions from the OP to the HF recommended for the whole period 2007-2015

SYSTEMS: JEREMIE policy mix

The MS or MA with the Holding Fund:
- define and review the JEREMIE strategy and policy mix :
- financial products offerred,
- targeted SME etc

- monitor implementation of JEREMIE

SYSTEMS: Selecting Financial Intermediaries

- Holding Fund proceeds to Call for expression of interest addressed to financial intermediaries.

- Holding Fund evaluates, selects and accredits financial interm.

- Accreditation subject to periodic review

- Holding Fund provides equity, loans or guarantees to selected fin. intermediaries

Types of Financial Intermediaries

Venture capital funds, including:
- Start ups and Seed capital funds
- Business angels
- Technology and innovation funds

- Guarantee funds

- Loan and mezzanine funds

- Micro credit providers

- Fin. intermediaries offering any combination of the above financial products and services

Phase 3: What kind of support for SMEs?

Maximum publicity for JEREMIE products for SMEs to be ensured by:
- OP,
- Holding Fund
- Financial Intermediaries)

Financial interm. evaluate proposals by SMEs and support them with:
- Equity and Venture capital
- Mezzanine financing
- Guarantees
- Loans
- Advice and assistance

Phase 3: Supporting Micro Credit Operations

- Banks reluctant to consider such "social economy" operations

- Specialized Micro Credit Providers fill the gap

Credit up to 25.000 EUR to:
– micro enterprises
– First time entrepreneurs
– Young or old entrepreneurs
– Women
– Minorities, unemployed, etc

Phase 3: Monitoring implementation of JEREMIE

- Holding Fund , in close cooperation with OP, monitors JEREMIE implementation by Financial intermediaries and reports to the MA

- Following effective demand for each type of financial product, MA channels funds from the OP to the HF

- HF following demand and efficient management, supports FI during the whole period 2007-2015

Phase 3:Closure of OPs end 2015

At the closure of OPs at the end of 2015, ERDF grants transferred to Holding Funds must have been used at least once, paid out of Financial Intermediaries, to:
- finance SMEs( equity,VC, loans, guarantees)
- finance micro credit beneficiaries, cover guarantees offered by
- Guarantee Funds finance eligible management costs

Recycling JEREMIE resources

- Contributions from OPs invested in SMEs under JEREMIE, when repaid to funds or holding funds, belong to the MS or MA

- Such Repaid resources must be invested again in favour of SMEs

JEREMIE Added Value

- ERDF Programmes planned timely on the basis of the gap analysis

- Only two selection procedures for the 9 years period 2007- 15

- Strategy and policy mix based on the gap analysis

- on going monitoring

- Updating - adjusting policy mix One professional Holding Fund selected by the Program to :
- promote all financial products,
- to accredit and select financial intermediaries

OPTIMUM FLEXIBILITY and SIMPLIFICATION

- One professional Holding Fund to:
- manage ALL financial products, based on gap analysis and demand
- select-accredit and contribute funds to financial intermediaries
- monitor implementation by financial intermediaries and report to MA

- Recycling OP resources contributed to JERREMIE = sustainability.

- Leveraging OP resources with private capital contributed by
- IFIs and other Banks,
- financial intermediaries,
- other investors.

SURSA: Regional Policy - Inforegio

JEREMIE, Joint European Resources for Micro to medium Enterprises, is an initiative of the Commission together with the European Investment Bank (EIB) and the European Investment Fund (EIF) in order to promote increased access to finance for the development of micro, small and medium-sized enterprises in the regions of the EU. JEREMIE was launched by the Commission and the EIB/EIF at a ministerial meeting in Brussels on 11 October 2005 and received large support. It was subsequently presented at the high-level conference involving the Presidency, the regions and financial institutions in Brussels on 24 November 2005 on the theme of “Financing growth and cohesion in the enlarged EU” where again it received wide support.

Improving access to finance is a priority area of the renewed Lisbon agenda for growth and jobs in an effort to increase the availability of capital in Europe for new business formation and development. Past