Massimiliano Di Pace 1

EU TRADE POLICY

Eu provides also initiatives, financing and services to support Eu companies’ efforts

for internationalisation

The measures are:

1) Eib loans

2) Eif funds

3) Programs for Sme internationalisation

Massimiliano Di Pace 2

EU TRADE POLICY

Eib (European Investment Bank) provides financing for large and small projects aimed

at supporting public institutions and enterprises investments

In 2009 Eib has financed 100.000 projects, directly or through commercial banks, funded

by Eib, committing 80 billions of euro

Massimiliano Di Pace 3

EU TRADE POLICY

The Eib activity is made up of 2 main actions:

-Loans: granted to programmes or projects in both the public and private sectors;

- Technical Assistance: provided by a team of expert economists, engineers and sectoral specialists to complement EIB financing facilities;

Massimiliano Di Pace 4

EU TRADE POLICY

The Eib has 2 financing facilities:

- Individual loans: provided to viable and sound projects and programmes costing more than 25 million euro;

- Intermediate loans: they consist incredit lines to banks and financial institutions to help them to provide finance to Sme with eligible investment programmes or projects costing less than 25 million euro

Massimiliano Di Pace 5

EU TRADE POLICYEib lends up to 50% of the investment costs of

a project

The intermediate loans can be used to cover all expenditure necessary for a small business to develop, such as:- Tangible investments: purchases of plant and equipment, but land purchases are ruled out unless they are essential to the project - Intangible investments: particularly the expenditure involved in R&D, or for building up a distribution networks in domestic or other markets within the EU, or buying Iprs,

Massimiliano Di Pace 6

EU TRADE POLICY

Eib loans for can be used also to re-establish businesses’ general liquidity ratio

The funds required to purchase raw materials, semi-manufactures, work-in-progress or

stock, but also commercial loans and payment guarantee instruments, are eligible for

financing

Massimiliano Di Pace 7

EU TRADE POLICY

Small businesses have to address their loan application to the commercial banks that have

received an Eib credit line

The Eib sites provides the list of intermediate banks, to whom address the project proposal

It should be noted that it is entirely up to the partner bank that examines the application and bears the

credit risk to decide whether or not to grant the loan

Massimiliano Di Pace 8

EU TRADE POLICY

Massimiliano Di Pace 9

EU TRADE POLICY

Initial contacts to discuss a proposed project can be in any form, by telephone, fax, e-mail

or letter

For such first contacts, the project promoter should provide sufficient information to allow verification of compliance of the investment

with the eligibility criteria of the Eib and have a well-developed business plan

Massimiliano Di Pace 10

EU TRADE POLICY

The project must respect eligibility criteria such as development of Smes, improvement of Eu competitiveness, development of an innovative and knowledge-based European

economy, more efficient energy use, alternative energy supplies

Massimiliano Di Pace 11

EU TRADE POLICY

The Eib will review the promoter's feasibility studies, and make a preliminary assessment of certain aspects of the project including the following aspects:- Technical- Environmental- Economic- Financial- Legal

Massimiliano Di Pace 12

EU TRADE POLICY

After a positive assessment, the project is approved formally, and the the loan can be

drawn down in one or a number of installments according to the borrower's requirements, usually starting within 12

months of the approval date

Massimiliano Di Pace 13

EU TRADE POLICY

Eif (European Investment Fund) is another Eu financial Institution, which provides financing to Eu

financial institutions engaged in venture capital, private equity funds, loans guarantees

In fact Eif does not provide direct funding or grants to Smes offering financial resources to a wide range

of financial intermediaries (banks, guarantee, microfinance institutions, private equity and venture capital funds, etc) that provide equity finance, loans,

micro-loans and guarantees to Smes

Massimiliano Di Pace 14

EU TRADE POLICY

The list of Eif financial intermediaries providing loans and venture capital to Smes is

available in the website www.accesstofinance.eu

In 2009 Eif has financed 39 Equity funds and 22 Guarantees entities committing 3 billions

of euro

Massimiliano Di Pace 15

EU TRADE POLICY

There is a Eu Program, Jeremie (Joint European Resources for Micro to

medium Enterprises), which promotes increased access to

finance for the development of micro and Smes in Eu

Massimiliano Di Pace 16

EU TRADE POLICY

Eu programs to support businesses internationalisation efforts are:

- Gateway to Japan and Korea

- Proinvest (Africa, Caribbean and Pacific)

- AL-Invest (Latin America)

- Switch Asia Programme

- EU-Japan Centre - Business programmes

Massimiliano Di Pace 17

EU TRADE POLICY

The Eu Gateway Programme provides financial and logistical support, strategic

preparation and a tailored search for business contacts whom the participating EU

companies will meet in Japan and/or Korea

It is based on Business missions organized by Eu aimed at facilitating meeting Eu and

Japanese companies

Massimiliano Di Pace 18

EU TRADE POLICY

The Proinvest initiative provides grants and assistance for projects carried out in Acp

(African, Caribbean, Pacific) countries aimed at supporting economic development in all

sectors

Proposals can be presented by organisations based both in Eu or in Acp countries

Massimiliano Di Pace 19

EU TRADE POLICY

Al-Invest is an economic co-operation program that aims to support the

internationalization of small and medium enterprises (Smes) in Latin America, in

collaboration with their European partners in order to contribute to reinforce social

cohesion in the region

Massimiliano Di Pace 20

EU TRADE POLICY

The program funds projects for organizations that represent and promote private sector

development, such as Chambers of Commerce, Trade Associations, Export-

Promotion Agencies, etc., and facilitates the process of internationalization of LA Smes

Massimiliano Di Pace 21

EU TRADE POLICY

The aim of Switch Asia program is to promote sustainable consumption and

production patterns in Asia

To achieve this objective, the program works simultaneously on the ground, with producers

and consumers, and at the level of policy-making through supporting for formulation

and implementation of environmental policies

Massimiliano Di Pace 22

EU TRADE POLICY

The Eu portal for Sme is the information centre of all Eu initiatives aimed at helping Eu

Smes