regional policy european commission 1 convent of marshals szczecin, 19-20 june 2008 jeremie...
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Regional Policy
EUROPEAN COMMISSION
1
Convent of MarshalsConvent of MarshalsSzczecin, 19-20 June 2008Szczecin, 19-20 June 2008
JEREMIEJEREMIEFinancial engineering ROP’sFinancial engineering ROP’s
Pascal BoijmansPascal Boijmans
Unit PolandUnit Poland
Directorate General for Regional PolicyDirectorate General for Regional PolicyEuropean CommissionEuropean Commission
Convent of MarshalsConvent of MarshalsSzczecin, 19-20 June 2008Szczecin, 19-20 June 2008
JEREMIEJEREMIEFinancial engineering ROP’sFinancial engineering ROP’s
Pascal BoijmansPascal Boijmans
Unit PolandUnit Poland
Directorate General for Regional PolicyDirectorate General for Regional PolicyEuropean CommissionEuropean Commission
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Regional Policy
EUROPEAN COMMISSION
22
Structure of PresentationStructure of Presentation
• Introduction: demand for financial engineering
• Solution: Jeremie
• Added value of a Holding Fund
• Added value of role EIF
• Jeremie in the EU
• Jeremie in Poland
• Conclusions/recommendations
StructureStructure
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Regional Policy
EUROPEAN COMMISSION
33
LIMITED ACCESS TO FINANCELIMITED ACCESS TO FINANCEObservatory of European SMEs (April 2007)Observatory of European SMEs (April 2007)
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Regional Policy
EUROPEAN COMMISSION
44
• .
EU SMEs - BARRIERS TO INNOVATIONObservatory of European SMEs (April 2007)
EU SMEs - BARRIERS TO INNOVATIONObservatory of European SMEs (April 2007)
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Regional Policy
EUROPEAN COMMISSION
55
Financial EngineeringFinancial Engineering
• Lisbon strategy: role of SMEs for growth and jobs, development of entrepreneurship
• Improving access to financing for SMEs and micro enterprises
• Traditionally support through grants; increasingly non grant instruments are used:– Loans– Guarantees– Equity– Tech-transfer– Mezzanine forms
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Regional Policy
EUROPEAN COMMISSION
66
Added ValueAdded ValueFinancial engineeringFinancial engineering
• Sustainability: transformation from grants into revolving funds
• Leverage: attract and combine with private capital
• Know How: new sources of technical, financial, and managerial expertise for economic development
• Stronger Incentives: for better performance by beneficiaries due to obligatory repayments
• Financial Sector Development: development and modernisation of financial sector in regions
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Regional Policy
EUROPEAN COMMISSION
77
SOLUTION: JEREMIESOLUTION: JEREMIE
• JEREMIE stands for:‘Joint European Resources for Micro to Medium Enterprises’
• JEREMIE is a joint initiative of the Commission and the EIF/EIB
• Its objective is to address market failures regarding access to finance for SMEs and to support new business creation in the regions of the EU
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Regional Policy
EUROPEAN COMMISSION
88
MAIN FEATURE: HOLDING FUNDMAIN FEATURE: HOLDING FUND
• Jeremie: 3 levels:– Holding Fund– Financial intermediaries– Final beneficiaries: SME’s
• Advantages of Holding Fund:– Risk diversification and better reaction to
market conditions– Flexibility: at any moment most appropriate
allocation of financial tools according to regional demands
– Tailor made financial support to SMEs– Strengthening of existing financial
intermediaries (not replacing them)
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Regional Policy
EUROPEAN COMMISSION
99
JEREMIE FLOW CHARTJEREMIE FLOW CHART
Operational Operational ProgrammeProgramme
SMEsSMEsFINANCIALINTERMEDIARIES
FINANCIALINTERMEDIARIESHOLDING FUNDHOLDING FUND
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Regional Policy
EUROPEAN COMMISSION
1010
JEREMIE PHASESJEREMIE PHASES
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Regional Policy
EUROPEAN COMMISSION
1111
JEREMIE PHASE 1 AND 2JEREMIE PHASE 1 AND 2
Phase 1 : Preparation• Evaluations (2006-2007-2008)• Programming
Phase 2: Set-up and implementation• MAs select Holding Fund (EIB/EIF, national
institution (Law) or public procurement)• MAs contribute to Holding Fund• HF selects financial intermediaries (public
procurement)• HF supports /takes participations in financial intermediaries
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Regional Policy
EUROPEAN COMMISSION
1212
JEREMIE PHASE 3JEREMIE PHASE 3
Phase 3: Disbursement
• Financial intermediaries support:
- SMEs
- micro-credit beneficiaries
• Closing OPs in 2015, or earlier
• Recycling OP resources
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Regional Policy
EUROPEAN COMMISSION
1313
ROLE AND ADDED VALUE EIFROLE AND ADDED VALUE EIF
• Profound knowledge on situation in regions/MS due to evaluations
• Institutional basis: established by EIB in 1994 to pursuit Community objectives
• International expertise: in SMEs finance, notably guarantees, venture capital and loans
• Market terms: encourage participation of both public and private financial institutions
• Know how transfer: product expertise in different regions/MS
• Local offices: information, marketing, contacts
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Regional Policy
EUROPEAN COMMISSION
1414
JeremieJeremie in EU in EU
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Regional Policy
EUROPEAN COMMISSION
1515
JEREMIE in EUJEREMIE in EU
• About 20 MS envisage implementing JEREMIE or JEREMIE type actions
• Some 85 OPs include an option to have JEREMIE or a JEREMIE type action
• Greece (June 2007) and Romania (early 2008) first to sign a holding fund agreement with EIF
• Other MS (Bulgaria, Slovakia, Latvia, Lithuania) expected to sign funding agreements with EIF soon
• Hungary and Wales implement JEREMIE through national financial institutions
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Regional Policy
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JEREMIE IN POLANDJEREMIE IN POLAND
Based on the results of national study for Poland JEREMIE recommended to concentrate public
support to SMEs in a form of holding fund with the total allocation up to EUR 1,160m.
The potential split between support mechanisms, identified in this study, should be as follows:
Based on the results of national study for Poland JEREMIE recommended to concentrate public
support to SMEs in a form of holding fund with the total allocation up to EUR 1,160m.
The potential split between support mechanisms, identified in this study, should be as follows:
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Regional Policy
EUROPEAN COMMISSION
1717
JEREMIE POLAND: THREE LEVELSJEREMIE POLAND: THREE LEVELS
• Regional OP’s (100% ERDF), planned: – Wielkopolskie 60 million €– Pomorskie 42 million €– Zachodniopomorskie 30 million €– Lodzkie 25 million € – Dolnoslaskie 38 million € (indicative)
• OP Eastern Poland– Warminsko-Mazurskie, Podlaskie, Lubelskie,
Swietokrzyskie, Podkarpackie– Evaluation study, then decision on allocation
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Regional Policy
EUROPEAN COMMISSION
1818
JEREMIE IN POLAND: THREE LEVELSJEREMIE IN POLAND: THREE LEVELS
• National level: OP Innovative Economy– National Capital Fund (KFK)– Possible support by advisor, selected by
public tender– More focus on venture and capital funds– ERDF contribution: 153 million €
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Regional Policy
EUROPEAN COMMISSION
1919
RECOMMENDATIONS/CONCLUSIONSRECOMMENDATIONS/CONCLUSIONS
• Congratulations to frontrunners Wielkopolskie and Pomorskie
• Take advantage of important preparatory work done by « group of 5 regions »– Funding agreement– Management costs– Legislative and organisational framework
• Support national level is needed– MoF: allow national co-financing for
JEREMIE– Clarification on national legislative and
organisational framework (outcome expert study)
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Regional Policy
EUROPEAN COMMISSION
2020
Recommendations/conclusionsRecommendations/conclusions
• Rules on financial engineering apply to all regions (with or without JEREMIE)– Respect public procurement (also « key
projects »)– Respect state aid rules
• Make use of experience in other MS:– workshops, seminars
• Timing is crucial: – reflect but do not forget to capitalise regional
funds allocated to your regions!
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Regional Policy
EUROPEAN COMMISSION
21
DZIEKUJE PANSTWU DZIEKUJE PANSTWU BARDZO ZA UWAGE BARDZO ZA UWAGE DZIEKUJE PANSTWU DZIEKUJE PANSTWU BARDZO ZA UWAGE BARDZO ZA UWAGE
Inforegio website:
http://europa.eu.int/comm/regional_policy