Financial Instruments supported by the European Structural and Investment (ESI) Funds in

Transcription

1 Regional Financial Instruments supported by the European Structural and Investment (ESI) Funds in REGIO B3, DG Regional and Urban European Commission

2 Regional 2

3 ERDF support through financial instruments exists in the last three programming periods (since 1994) In and FIs were used only in limited extension (few MSs, limited resources) In major expansion of FIs in number, variety, scope and amounts paid to them (data as at the end of 2013): Member States report a total of 941 FIs set-up for , with both models of implementation: with ( 69 HF) or without a holding fund ( 872 specific funds); More than EUR 14 billion contributed by operational programmes delivered through Fis, out of which 9,57 bn from ERD and ESF ( under more than 170 Operational Programmes); EUR 12,150 billion of OP contributions available in the specific loan, guarantee, equity/venture capital funds for investments in enterprises, 3 Regional

4 Regional 4

5 Regional 5

6 1. Wider scope 2. Ex-ante assessment 3. More implementation options for managing authorities Traditional implementation: : Taylor made instruments (cf ) Standardised off-the-shelf instruments MA can contribute OP allocations to EU level instrument (COSME, Horizon, "SME Initiative") MA can implement loans or guarantees directly (or through intermediate body) without formal set-up of a fund 4. Opportunity offered to contribute to the SME Initiative (Art39CPR); Regional 6

7 5. Better combination of FIs & other forms of support 6. EU co-financing Incentives regarding EU co-financing rates Flexibility for national public & private co-financing contributions under operational programmes 7. Phased contributions to FIs 8. Eligible expenditure at closure 9. Interest and other gains, re-use of resources 10. Reporting on FI implementation Regional 7

8 Regional Centrally managed by COM (Financial Regulation) Shared Management with MS (Common Provisions Regulation) Research, Development Innovation Growth, Jobs and Social Cohesion Infrastructure Horizon 2020 Equity and Risk Sharing Instruments Competitiveness & SME (COSME) Equity & guarantees Social Change & Innovation Creative Europe Guarantee Facility Erasmus for all Guarantee Facility Connecting Europe Facility (CEF) Risk sharing (e.g. project bonds) and equity instruments Instruments under Structural and Cohesion Funds Contribution to EU level (central management) National/regional instruments (shared management) Off-the shelf FIs Tailor made FIs Significant higher amounts than currently!

9 Regional Specific rules on the purchase of land Combination of technical support with financial instruments Specific rules on the role, liabilities and responsibility of bodies implementing financial instruments Criteria for the selection of bodies implementing financial instruments Specific rules on guarantees delivered through financial instruments Management and control of financial instruments set up at national, regional, transnational or cross-border level Rules for withdrawal of payments to financial instruments and consequent adjustments in respect of applications for payment 9

10 Regional System of capitalisation of annual instalments for interest rate subsidies and guarantee fee subsidies Criteria for determining management costs and fees on the basis of performance Thresholds for management costs and fees Reimbursement of capitalised management costs and fees for equity-based instruments and micro-credit 10

11 Regional Financial instruments complying with the standard terms and conditions laid down by the Commission (off the shelf financial instruments) Modalities of the transfer and management of programme contributions, managed by the entities referred to in the first subparagraph of Article 38(4) of Regulation (EU) No 1303/2013 Model for reporting on financial instruments Funding agreement SME initiative 11

12 Regional Help managing authorities to deliver faster and safer financial means to the final recipients; Alignment and complementarity with the EU level instruments (no overlapping but complementary); Combining public and private resources, seek for leverage EU (and/or public) contributions; Switch from grant dependency to a more sustainable way of project finance. 12

13 Regional Three for SMEs 1. Loan for SME's based on a portfolio risk sharing loan model (Risk Sharing Loan). 2. Guarantee for SMEs (partial first loss portfolio, capped guarantee). 3. Equity fund for SMEs and start-up companies based on a coinvestment model ). One for energy efficiency/renewable energies and one for urban development 1. Renovation Loan based on a Risk sharing loan model (RS Loan). 2. Urban Development Fund ( ). 13

14 1. Loan for SME's based on a portfolio risk sharing loan model (RS Loan) Regional

15 Regional 1. Portfolio Risk Sharing Loan:

16 2. Guarantee for SMEs (partial first loss portfolio) (Capped guarantee) Regional

17 Regional 2. Capped Portfolio Guarantee:

18 4. Loan for energy efficiency and renewable energies in the residential building sector (Renovation Loan) Regional 18

19 Regional 4. Renovation Loan:

20 Regional Increase the volume of lending to SMEs in the EU; Pooling resources: European Structural Investment Funds (ESIF) + COSME and Horizon 2020; Combine and fully utilise the EIB and EIF and possibly National Promotional Banks' capacities; Providing Capital Relief to EU bank to make them more robust and to incentivize them to extend additional loans to SMEs; Act fast and achieve significant impact to stimulate SME financing and economic growth 20

21 Regional SME Initiative: main features SME model funding agreement Regulation published on 11/09/

22 Financial Instruments - Technical Advisory Platform Regional

23 TA and advisory needs at various stages of FI implementation Forms of delivering assistance Design of FIs Implementation cycle of FIs advice on conducting ex-ante assessments, assessing market demand, policy fit, sector-specific investment strategies and products, development of implementation structures, identification of potential co-financing sources, State aid and procurement considerations, features and economic viability of target final recipients, etc. Set-up of FIs advice on procurement and selection of bodies implementing FIs, development of business plans of FIs for thematic objectives, Drafting and conclusion of funding agreements, etc. Implementation of FIs guidance on the investment process (identification, evaluation and selection of final recipients or projects), financing agreements with final recipients, financial management (treasury, disbursement, repayment, follow-on investments), cost and fee structures, detection and settlement of irregularities, monitoring, auditing, reporting, etc. advice on exit strategies, legacy requirements, situations of default, etc. Exit / Winding-up of FIs Horizontal Assistance Multi-region Assistance Programme- and instrument-specific assistacne

24 Two forms of assistance delivery under the FI-TAP European Commission Initiated by EC Paid by EC Paid by EC MS-level support [outside the scope of the TA platform] Horizontal assistance: applicable to all MS and types of financial instruments initiated and financed by the EC (topdown) activities would typically include the exchange of best practice and the networking across MS, as well as trainings or guidance on common themes such as ex-ante assessments, public procurement, regulatory aspects concerning cohesion policy, possibly State aid, etc. Multi-region assistance: initiated by CP stakeholders for the benefit of more than X managing authorities in a minimum number of Y MS (bottom up); paid by the EC on the basis of several open calls for project proposals to be organised by EC activities would typically include support for the development of FIs targeting development objectives or market failure that are shared by a number of regions (e.g. EE interventions in housing in CEE or cross-border initiatives (Baltics)). Programme-specific assistance: services and guidance regarding the design, set-up and implementation of a specific FI within specific programme requested by managing authorities and financed by the MA from the TA budget of the programme involved. activities would typically include the formulation of sector and territoryspecific investment strategies, the design of specific loan, equity or guarantee products or the development of procurement procedures. Appropriate advisory service providers (IFIs, NFIs, other) TA Initiated by MA/IFIs/NFIs under the TAP Member States, managing authorities and other ESIF stakeholders TA Any service provider Requested by MA Paid by MA MS/MA, ESIF stakeholders TA

25 Open call for project proposals to gain the technical expertise to establish financial instruments addressing challenges common to the participating Managing Authorities Needs for technical advice identified on the basis of a survey: _ta_survey_en.pdf Catalogue of specific activities of the Horizontal FI-TAP developed by a study being finalised (for COM internal use) Negotiations with the EIB are ongoing Contract expected to be signed by end-june First services to be delivered in September Public conference on FIs implementation and the FI-TAP is planned for January Regional

26 Open call for project proposals with the objective to gain technical expertise to establish financial instruments addressing challenges common to the participating Managing Authorities Eligible will be projects of at least two Managing Authorities from two different Member States and 1) at least one IFI, or alternatively 2) at least two NFIs from two different Member States Under the award criteria, consortia which include further relevant partners, e.g. academia or other relevant institutions with public mission would be preferred The size of the projects would be up to 2.5 million, cofinancing rate up to 95% since it is a very new and rather challenging initiative Regional 26

27 Timing By when Multi-region FI-TAP Mid-July 2014 End-August 2014 End-October 2014 End-November End-February 2015 End-August 2015 End-November 2015 COM to decide on the call themes (Ideas are welcome!) Call text ready Call published Information Day Deadline for submission Information to applicants Grant agreements signed Regional 27

28 Common Provisions Regulation and ESI Funds specific Regulations adopted, published on 20 December 2013; Delegated Act published on 13 May 2014 and Implementing Act "ongoing" Development of "off-the-shelf" instruments on-going. Implementing act on loans -risk sharing, capped guarantees, and energy efficiency adopted 11 September 2014; TA platform for financial instruments in cohesion policy under development. 28 Regional

29 Implementing Act (EU) No 821/2014 of 28 July 2014, also on reporting on financial instruments SME model funding agreement publication on 11/09/2014 Regional 29

30 Factsheet: Financial Instruments in Cohesion financial_instruments_en.pdf Panorama Autumn 2012: Using financial instruments to leverage support for regional policy /mag43_en.pdf Financial Instruments: A Stock-taking Exercise in Preparation for the Programming Period final.pdf Regional 30

31 Financial instruments as an efficient delivery mechanism for economically viable investments Legal framework for implementing FI Ex-ante assessment is key before contributing to a financial instrument Multiple implementation options are proposed Regional 31