JEREMIEJEREMIE

• JEREMIE stands for ‘Joint European JEREMIE stands for ‘Joint European REsources for MIcro to medium REsources for MIcro to medium Enterprises’Enterprises’

• ‘ ‘ Joint resources’ because JEREMIE Joint resources’ because JEREMIE combines resources from ERDF + combines resources from ERDF + national public sector + EIB+ other IFIs, national public sector + EIB+ other IFIs, banks & financial intermediaries.banks & financial intermediaries.

• Not an organisation but a series of Not an organisation but a series of coherent actions coherent actions

Why JEREMIE?Why JEREMIE?

• Enhanced Access to finance for Enhanced Access to finance for SMEs in the regions is neededSMEs in the regions is needed

• Renewed Lisbon Renewed Lisbon Strategy and CSG Strategy and CSG stress the need to enhancestress the need to enhance

market driven and sustainable market driven and sustainable financial products and instrumentsfinancial products and instruments

Main Actors of JEREMIEMain Actors of JEREMIE

• Commission: DG REGIO with ENTR and Commission: DG REGIO with ENTR and ECFINECFIN

• EIF + EIB (EIB as loan capital provider)EIF + EIB (EIB as loan capital provider)• Other IFIs, mainly the EBRD for the 8 Other IFIs, mainly the EBRD for the 8

new MS, Council of Europe Dev. Bank new MS, Council of Europe Dev. Bank (CEB)(CEB)

• Other specialized financial Other specialized financial intermediaries, I.E. KfW (DE), Caisse des intermediaries, I.E. KfW (DE), Caisse des dépots (FR),etcdépots (FR),etc

Main Actors of JEREMIEMain Actors of JEREMIE

• Regions and programme authoritiesRegions and programme authorities• National and regional banks and National and regional banks and

financial intermediariesfinancial intermediaries• SMEsSMEs• Micro credit (up to 25.000 EUR)Micro credit (up to 25.000 EUR) beneficiaries:beneficiaries:

• Young or old first time entrepreneursYoung or old first time entrepreneurs• WomenWomen• minoritiesminorities

JEREMIE PHASESJEREMIE PHASES

Phase 1 : PreparationPhase 1 : Preparation• Evaluations (2006-2007)Evaluations (2006-2007)• Programming Programming Phase 2: ImplementationPhase 2: Implementation• Selecting of Holding Fund. MA transfers Selecting of Holding Fund. MA transfers

funds to Holding Fundfunds to Holding Fund• Selecting of Financial Intermediaries, Selecting of Financial Intermediaries,

accreditationaccreditationPhase 3: Financing SMEs and micro-credit Phase 3: Financing SMEs and micro-credit

beneficiariesbeneficiaries

Phase 1: EvaluationPhase 1: Evaluation

Evaluation consists in: Evaluation consists in: • gap analysis of potential demand gap analysis of potential demand

and supply of financial products for and supply of financial products for SMEs in the regionsSMEs in the regions

• identifying and recommending identifying and recommending appropriate market driven appropriate market driven instruments to fill the gap instruments to fill the gap

EvaluationEvaluation

• To be carried out by the EIF in To be carried out by the EIF in close cooperation with the regions, close cooperation with the regions, in 2006 and early 2007in 2006 and early 2007

• EIF will be assisted by Commission EIF will be assisted by Commission services: services: – DG REGIO: B1+ Operational Desks DG REGIO: B1+ Operational Desks + Evaluation Unit+ Evaluation Unit– DG ENTR, DG ECFINDG ENTR, DG ECFIN

• Expected inputs from:Expected inputs from:•European Micro finance Network( EMN)European Micro finance Network( EMN)•European Banking FederationEuropean Banking Federation•European Venture Capital European Venture Capital Association (EVCA)Association (EVCA)•Other associations and networksOther associations and networks

Evaluation Evaluation

EvaluationEvaluation

Evaluations are available Evaluations are available freelyfreely to: to:• Regions-programme authoritiesRegions-programme authorities• Interested holding funds andInterested holding funds and

financial intermediariesfinancial intermediaries• Associations of SMEs and Associations of SMEs and

Chambers of commerce Chambers of commerce

Who Finances the Who Finances the Evaluation?Evaluation?

• ERDF- Commission technical ERDF- Commission technical assistance credits will cover assistance credits will cover

75% of the cost75% of the cost• EIF will cover 25% of the costEIF will cover 25% of the cost• Budget for 2006: 3.5 million EURBudget for 2006: 3.5 million EUR

Phase 1: ProgrammingPhase 1: Programming

• Operational programmes use Operational programmes use results of evaluationsresults of evaluations

• DG ENTR and ECFIN contribution to DG ENTR and ECFIN contribution to programming phaseprogramming phase

Phase 2: Selecting Phase 2: Selecting Holding FundHolding Fund• Tendering procedure by MA for the Tendering procedure by MA for the

selection of holding fundselection of holding fund• Commission services will adviseCommission services will advise

on organizing tenderingon organizing tendering• EIF willing to respond to tenders, EIF willing to respond to tenders,

alone or with IFIs/local financial alone or with IFIs/local financial institutionsinstitutions

Phase 2: Selecting Phase 2: Selecting Holding FundHolding Fund

The Holding Fund with the progr. The Holding Fund with the progr. authority, based on the evaluation:authority, based on the evaluation:

• Define and Define and periodicallyperiodically review the review the JEREMIE strategy and policy mix JEREMIE strategy and policy mix (supported financial products, targeted (supported financial products, targeted SMEs, etc)SMEs, etc)

• Arrange for the necessary market Arrange for the necessary market driven instruments and financial driven instruments and financial intremediaries intremediaries

OP Transfers funds to OP Transfers funds to Holding FundHolding Fund

• OP transfers funds to the Holding Fund OP transfers funds to the Holding Fund for ALL types of for ALL types of

financial productsfinancial products• Such Transfers are IRREVERSIBLE for the Such Transfers are IRREVERSIBLE for the

period 2007-2015period 2007-2015• Supplementary irreversible transfers Supplementary irreversible transfers

possible in the period 2007-2015possible in the period 2007-2015• Such transfers are eligible as interim Such transfers are eligible as interim

ERDF payments (rev art 77 of general ERDF payments (rev art 77 of general regulation)regulation)

Selecting Financial Selecting Financial IntermediariesIntermediaries

• MA assisted by Holding Fund MA assisted by Holding Fund selects financial intermediariesselects financial intermediaries

• Holding Fund accredits financial Holding Fund accredits financial intermediariesintermediaries

• Accreditation subject to periodic Accreditation subject to periodic reviewreview

Types of Financial Types of Financial IntermediariesIntermediaries

• Venture capital funds, including:Venture capital funds, including:• Start ups and Seed capital fundsStart ups and Seed capital funds• Business angelsBusiness angels• Technology and innovation fundsTechnology and innovation funds• Technology fundsTechnology funds

Types of Financial Types of Financial IntermediariesIntermediaries

• Guarantee fundsGuarantee funds• Loan and mezzanine fundsLoan and mezzanine funds• Micro credit providersMicro credit providers• Fin. intermediaries offering any Fin. intermediaries offering any

combination of the above financial combination of the above financial products and services products and services

Phase 3: What kind of Phase 3: What kind of support for SMEs?support for SMEs?

• Maximum publicity for JEREMIE products for Maximum publicity for JEREMIE products for SMEs and micro credit beneficiaries SMEs and micro credit beneficiaries (ensured by OP, Holding Fund and Financial (ensured by OP, Holding Fund and Financial Intermediaries)Intermediaries)

• Financial intermediaries evaluate proposals Financial intermediaries evaluate proposals by SMEs and provide them with:by SMEs and provide them with:

• Equity and Venture capitalEquity and Venture capital• Mezzanine financingMezzanine financing• GuaranteesGuarantees• LoansLoans• Advice and assistanceAdvice and assistance

Micro Credit OperationsMicro Credit Operations

• Banks are reluctant to consider such Banks are reluctant to consider such "social economy" operations"social economy" operations

• Specialized Micro Credit Providers can Specialized Micro Credit Providers can fill the gapfill the gap

• Credit up to 25.000 EURCredit up to 25.000 EUR• First time entrepreneursFirst time entrepreneurs• Young or old entrepreneursYoung or old entrepreneurs• WomenWomen• Minorities, unemployed, etcMinorities, unemployed, etc

Monitoring JEREMIE Monitoring JEREMIE

• Holding Fund , in close cooperation with Holding Fund , in close cooperation with OP, monitors JEREMIE implementation by OP, monitors JEREMIE implementation by Financial intermediariesFinancial intermediaries

• Following effective demand for each Following effective demand for each type of financial product, Holding Fund type of financial product, Holding Fund channels funds from the OP to FI in the channels funds from the OP to FI in the whole period 2007-2015whole period 2007-2015

Closure of OPs and Closure of OPs and JEREMIE in 2015JEREMIE in 2015

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

Added Value of JEREMIEAdded Value of JEREMIE

•Evaluation of gaps between supply and

demand in the regions( by EIF in 2006)•ERDF Programs for 2007-2013 planned timely on the basis of the gap analysis•Two tendering procedures planned for the whole 9 years period 2007-2015.•Strategy and policy mix defined on the basis of the gap analysis

• One professional Holding Fund selected by the Program to :

• promote all financial products, • to accredit and select financial

intermediaries

One professional Holding Fund to :

•Implement all financial products, based

on gap analysis and EFFECTIVE demand

•Accredit-select and transfer funds to financial intermediaries

•Monitor implementation by financial intermediaries

Added Value of JEREMIE Added Value of JEREMIE

Added Value of JEREMIEAdded Value of JEREMIE

•Recycling ERDF funds contributed to JERREMIE = sustainability.

•Leveraging ERDF grants with private capital contributed by holding fund, Banks, financial intermediaries, other investors.