improving the eu policy environment for micro-enterprises and microfinance 4th european microfinance...
TRANSCRIPT
Improving the EU policy environment for micro-enterprises
and microfinance
4th European Microfinance ConferenceBerlin, 27 April 2007
Cindy Fökehrer
Enterprise and Industry Directorate-General
Microfinance: DG ENTR activities
• Policy-making– “Microcredit for small businesses and
business creation: bridging a market gap” Report, November 2003
– Microcredit European Conference, September 2004
– Expert group on the regulation of microcredit 2006-2007
• Financing– Ongoing financial instrument with special
focus on promoting micro finance: microcredit window of SME Guarantee Facility
Financial instruments: MAP & CIP
MAP Period: 2000-2006
EU Budget: approx. € 500 million (in 2004 prices)
CIP Period: 2007-2013
EU Budget: € 1,129 billion (in current prices) I N D I C A T I V E :
ETF-Start-ups (approx. € 200 m)- VC funds - high tech, early stages < 5 y
- Incubators
High Growth Innovative Companies Scheme - GIF (€ 554 m) - VC funds – GIF 1 (€ 255 m): • Early stages • Expansion stages (funding € 200,000 - €2.5 m) - Co-investments in side-funds with business angels - GIF2 (€ 299 m)
SMEG (approx. € 300 m)- SME loans guarantee - Microcredit guarantee - Equity guarantees - ICT loans guarantees
SMEG (€ 506 m)- SME loans guarantee - Microcredit guarantee - Equity and mezzanine guarantee - SME loan securitisation risk-sharing scheme
JEV
Capacity Building (approx. € 1 m)- Seed Capital Action
Capacity Building (€ 69 m)- Seed Capital Action (€ 19 m) Partnership with IFIs (€ 50 m)
How do the Financial Instruments work in practice?
Financial Intermediary
Venture capital Fund
SMEs
SMEs
Invests
Invests
Lends
Provide funds
Guarantee Society
Counter or Co-Guarantees
European Commission budget
EIB and Own Funds
MFI
Financial instruments
From the MAP to the CIP (2007-2013):
– EIF provides a guarantee (up to 75%) to microcredit providers, on behalf of the Commission
– Provides also a lump sum grant of EUR 200 for each micro-loan to partially offset the transaction costs
Useful links
• Policies on access to finance– europa.eu.int/comm/enterprise/entrepreneurship/financing/– http://europa.eu.int/comm/enterprise/entrepreneurship/
financing/publications_documents.htm
• Financial instruments– europa.eu.int/comm/enterprise/entrepreneurship/financing/
instruments.htm– http://eif.org
• New CIP programme:– http://europa.eu.int/comm/enterprise/enterprise_policy/cip/
index_en.htm
Contact
Cindy FökehrerEnterprise & Industry Directorate-GeneralFinancing SMEs, entrepreneurs & innovatorsEuropean CommissionB-1049 BrusselsFax +32 2 295 21 54Email: [email protected]