The Future of the COSME Programme Annual meeting of the European Entrepreneurial Regions 29 June 2017 Directorate-General for Internal Market, Industry, Entrepreneurship and SMEs Unit H3: Ciprian Cristea (Head of Unit)
COSME LGF - Implementation 70 agreements signed end of March 2017, for an overall amount of almost EUR 702 million (LGF budget allocation enhanced through additional riskbearing capacity from EFSI), with expected financing volume of EUR 23.2 billion Financial intermediaries located in 25 countries 2
Austria Belgium Bulgaria Croatia Czech Rep. Denmark Estonia France AWS SOWALFIN, PMV CIBANK, BDB, NGF, Raiffeisenbank, Raiffeisen Leasing PBZ CMZRB, Komercni Banka, Equa Bank Vaekstfonden, Vaekstfonden Farmers Kredex, Swedbank Bank, Swedbank Leasing France Active Garantie, SOCAMA*, SIAGI, GE Capital Equipement Finance, FranFinance Germany LfA, KfW*, Buergschaftsbanken Greece NBG, Eurobank Hungary K&H, AVHGA, Erste Bank Ireland SBCI Italy BdM-MCC*, CDP-SACE, BCC Lease, Credito Emiliano*, CDP, 12 Italian guarantee institutions (confidi) Latvia Swedbank Bank, Swedbank Leasing Lithuania Swedbank Bank, Swedbank Leasing Montenegro CKB Netherlands Qredits Poland BGK, Raiffeisen Leasing, Idea Bank Romania Libra Internet Bank Serbia Banca Intesa Slovakia CSOB Slovenia SEF Spain Microbank, CERSA Turkey QNB Finansbank UK EZBOB, iwoca Based on the agreements signed as of 31/03/2017. * EIF signed 2 agreements with SOCAMA, KfW, BdM-MCC and Credito Emiliano. 25 countries where agreements have been signed 1 country where transactions have been approved 1 country where applications have been received 3
COSME LGF Type of intermediaries Intermediary type Financing volume (million EUR) Financing volume (%) Expected number of SMEs to receive financing Guarantee institutions EUR 12,421m 53.6% 207,000 Promotional banks EUR 6,521m 28.1% 102,000 Commercial banks EUR 3,154m 13.6% 128,000 Leasing companies EUR 1,089m 4.7% 53,000 TOTAL EUR 23,185m 100% 490,000 Based on the agreements signed as at 31/03/2017 4
COSME LGF - Implementation End 2016, more than EUR 5.5 billion of financing provided to more than 143,000 SMEs in 21 countries 92% of SMEs are micro enterprises (including self-employed persons) and 40% start-ups 5
COSME LGF type of SME transactions Transaction type Total portfolio inclusions (million EUR) Total portfolio inclusions (%) Average SME transaction size Investment loans and ancillary working capital EUR 3,408m 61.4% EUR 30,700 Leases EUR 300m 5.5% EUR 25,200 Working capital term loans Revolving loans and overdrafts EUR 1,250m 22.5% EUR 37,700 EUR 574m 10.3% EUR 72,700 Bank guarantees EUR 15m 0.3% EUR 150,000 TOTAL EUR 5,547m 100% EUR 33,800 Based on the SME debt financing inclusions as at 31/12/2016 6
SMEs supported by LGF Geographical distribution Slovenia 1,9% Slovakia 0,1% Romania 0,8% Poland 2,5% Netherlands 0,3% Montenegro 0,2% United Kingdom 1,3% Spain 18,2% Austria 3,9% Belgium 1,5% Bulgaria 1,7% Czech Republic 3,6% Denmark 0,3% France 23,0% Estonia 1,3% Lithuania 0,2% Latvia 0,1% Italy 27,6% Hungary 0,9% Greece 0,6% Germany 10,0% Source: LGF Quarterly Operational Report 31 December 2016 (volume of financing received) 7
SME transactions supported by LGF - Sectors Source: LGF Quarterly Operational Report 31 December 2016 Volume of financing provided Sector Code Description (Nace level 1) meur % A Agriculture, forestry and fishing 327.2 5.9% B Mining and quarrying 8.4 0.2% C Manufacturing 1,053.1 19.0% D Electricity, gas, steam and air conditioning supply 11.2 0.2% E Water supply; sewerage; waste managment and remediation activities 24.0 0.4% F Construction 584.3 10.5% G Wholesale and retail trade; repair of motor vehicles and motorcycles 1,401.4 25.3% H Transporting and storage 389.4 7.0% I Accommodation and food service activities 447.4 8.1% J Information and communication 129.9 2.3% K Financial and insurance activities 61.5 1.1% L Real estate activities 67.4 1.2% M Professional, scientific and technical activities 312.7 5.6% N Administrative and support service activities 180.9 3.3% O Public administration and defence; compulsory social security 0.6 0.0% P Education 48.3 0.9% Q Human health and social work activities 159.4 2.9% R Arts, entertainment and recreation 84.1 1.5% S Other services activities 244.7 4.4% T Activities of households as employers; undifferentiated goods - and services - producing activities of households for own use 11.4 0.2% U Activities of extraterritorial organisations and bodies 0.2 0.0% Total 5,547.2 100.0% Info also available in the COSME LGF Implementation Status report published quarterly by the EIF: http://www.eif.europa.eu/what_we_do/guarantees/single_eu_debt_instrument/cosmeloan-facility-growth/index.htm 8
COSME LGF - Outlook At current speed, remaining annual budgets to be allocated towards the LGF (around 70% of total budget for COSME financial instruments) not sufficient to cover continued strong market demand EFSI 1.0 => EFSI front-loading converted to permanent top-up of EUR 550 million: 5th amendment to the COSME DA expected to be signed in the third quarter of 2017 EFSI 2.0 (extension and increase of EFSI 1.0) => under negotiations with EP and Council 9
Thank you for your attention! 10