Post on 27-Mar-2015
The European Progress Microfinance Facility
Raymond MaesEuropean Commission
Employment, Social Affairs & Equal Opportunities
Open days 6 October 2010
Why this initiative?
Part of response to crisis with rising unemployment and social exclusion.
Commission communication June 2009:‘A shared commitment for employment’‘ offer a new chance to the unemployed and
open the road to entrepreneurship for some of Europe’s most disadvantaged groups’
How?
Redeploy and leverage EU resources to:
• Extend range of targeted financial support to new entrepreneurs in the current context of a reduced credit supply.
Gear existing instruments to better:
• Assist (potential) micro-entrepreneurs with mentoring, training and coaching.
What do we aim at?
Creating jobs and fighting exclusionby:
Increasing access to, and availability of, microfinance for:
vulnerable groups (unemployed, disadvantaged people, youth...)
micro-enterprises, especially those in the social economy
How much?
• Union’s contribution € 100 M (2010-2013)
• EIB contribution: up to € 100 M
Expected total ‘leverage’: € 500 M
What are the products?(jointly managed with EIF/EIB)
Guarantees on microcredit portfolios (€ 25 million from EU
resources)
Specialised Investment Fund (SIF) providing:– debt instruments– equity
to be on-lent in the form of microcredits(up to + € 225 million = € 74m from EU + up to € 100m from the EIB + up to € 51m from other investors)
Who are the providers?
Public and private financial intermediaries (MFI); on national, regional and local levels in the EU; providing microcredits to persons/micro-
enterprises in the EU; or guarantees on microcredits in the EU
special investment vehicle
MFIy MFIz
FBx FBx FBx
FBy FBy FByFBz FBz
MFIx
Fund Manager(EIF)
FBz
Agreement between special vehicle and MFI
Micro-creditto final
beneficiaries
FB=Final Beneficiaries
European Commission
Share holdingin special vehicle
But besides funding…integrated business support is crucial• Delivered in the form of integrated packages of financial,
business and social expertise to starters• Offering advice, training, mentoring and support for
preparing the start into self-employment, and for the first years in business
• Broad range of delivery / support systems:– European Social Fund (ESF) - more than € 2.75 billion for
entrepreneurship– Public employment services - first contact point (local offices and
advisors)– Enterprise Boards - Network of 550 contact points– Non-governmental organisations (NGOs) - reaching out to the
most excluded
The individual’s perspective
Public employment
service or NGO Microfinance provider
(bank or NGO)
4. Training, coaching (European Social Fund)
Micro-enterpris
e
1
2
3
IndividualMicro entrepreneur
loanloanIn
form
atio
n
Support
Next steps?
• 9-10 November 2010: European Microfinance conference Official launch Microfinance Facility
• Spring 2011: first annual report
• In parallel: development of assistance to business support structures
Thank you!
General information on:
www.ec.europa.eu/epmfInformation for intermediaries:
http://www.eif.europa.eu/(under: Microfinance - European Progress Microfinance Facility)