Transcript Document

Structural instruments in Romania
Conference, December 11 / 12 - 2006
Presentation by Stefan Adamec
ACCESS TO FINANCES
The finance needed to support growth
INSTRUMENTE STRUCTURALE IN ROMANIA
Introduction
Part A:
STANDARD APPROACH OF THE COMMERCIAL
FINANCIAL INSTITUTIONS
TO THE EU COOFINANCING
Part B:
ADDITIONAL FINANCIAL RESOURCES OF THE EU
INNOVATIVE INSTRUMENTS – JEREMIE CASE
INSTRUMENTE STRUCTURALE IN ROMANIA
Introduction
The Structural and Cohesion Funds for
Romania amount to 19.668 billion Euros,
out of which 12.661 billion Euro will be
canalized through the Structural Funds
under the Convergence Objective, 6.552
billion Euro for the Cohesion Fund, and
0.445 billion Euro will be allocated for the
European Territorial Cooperation.
INSTRUMENTE STRUCTURALE IN ROMANIA
STANDARD APPROACH OF THE COMMERCIAL FINANCIAL
INSTITUTIONS TO THE EU COOFINANCING
Drawing of EU funds:
• Drawing of EU funds based on the percentage of
irrecoverable subsidy; the so-called assistance
intensity is based on determination of the
justified expenses’ amount.
• The project costs are usually higher than the
amount of justified expenses, based on which
the EU subsidy amount is calculated
INSTRUMENTE STRUCTURALE IN ROMANIA
STANDARD APPROACH OF THE COMMERCIAL FINANCIAL
INSTITUTIONS TO THE EU COOFINANCING
BASIC RULE:
Reimbursement from EU funds can be
made only after the expenses have
been paid using own/bank funds.
INSTRUMENTE STRUCTURALE IN ROMANIA
STANDARD APPROACH OF THE COMMERCIAL FINANCIAL
INSTITUTIONS TO THE EU COOFINANCING
Banks with the specialized products usually
offer the following services:
• assistance with preparation and presentation
• financing of the project
• helping to obtain irrecoverable EU funds and meet your target.
Drawing of EU funds is always connected with the applicant’s own
funds. In case you lack sufficient amount of own funds, the bank
offers you a loan to bridge the time period until the reimbursement
from EU funds or the possibility of co-financing:
INSTRUMENTE STRUCTURALE IN ROMANIA
STANDARD APPROACH OF THE COMMERCIAL FINANCIAL
INSTITUTIONS TO THE EU COOFINANCING
Advance financing:
•
Bridge loan with EU funds (up to the
amount of approved grant) – to bridge the
time gap between the need of payment of
justified costs to the client’s supplier and
reimbursement of these expenses by
payment unit
Co-financing:
•
Investment loan (up to the amount of
approved grant)Working capital loan
INSTRUMENTE STRUCTURALE IN ROMANIA
STANDARD APPROACH OF THE COMMERCIAL FINANCIAL
INSTITUTIONS TO THE EU COOFINANCING
Other products make the project successful:
• Monitoring of EU funds issues
• Consultancy - prior to and during the project preparation
• Commitment letter
- binding – declares the bank’s readiness to finance the project
- non-binding - binding confirmation that, providing that the client’s
project has been approved by the managing authority, the bank will
finance the project
• Bank guarantees – prior to and during the project preparation
• Special banking account - keeping of a special banking
account for all financial flows related to the project that is financed
from Structural Funds
INSTRUMENTE STRUCTURALE IN ROMANIA
STANDARD APPROACH OF THE COMMERCIAL FINANCIAL
INSTITUTIONS TO THE EU COOFINANCING
Project cycle with the bank:
• Success of the project depends especially on quality
preparation and right timing of the application filing
upon the respective call.
• There is no need to wait until the specific call for
proposals’ submission has been published, you can
come and consult on your project beforehand.
• The bank will become your guide over the entire
project preparation, financial support inclusive.
INSTRUMENTE STRUCTURALE IN ROMANIA
STANDARD APPROACH OF THE COMMERCIAL FINANCIAL
INSTITUTIONS TO THE EU COOFINANCING
The banks offer professional and financial
assistance in the following areas:
•
•
•
•
•
•
Obtaining information
EU financing criteria
Project priorities
Project preparation
Time schedule
Cooperation with managing authorities in course of the
project’s monitoring period.
THE END OF PART A
INSTRUMENTE STRUCTURALE IN ROMANIA
ADDITIONAL FINANCIAL RESOURCES OF THE EU
INNOVATIVE INSTRUMENTS – JEREMIE CASE
JEREMIE
“Joint European Resources
for Micro to Medium Enterprises”
Enhancing access to finance in the
European Regions
INSTRUMENTE STRUCTURALE IN ROMANIA
ADDITIONAL FINANCIAL RESOURCES OF THE EU
INNOVATIVE INSTRUMENTS – JEREMIE CASE
The initiative JEREMIE will enable
European Member States and Regions to
use part of their structural funds to
obtain a set of financial instruments that
are specifically designed to support micro
and small and medium enterprises.
INSTRUMENTE STRUCTURALE IN ROMANIA
ADDITIONAL FINANCIAL RESOURCES OF THE EU
INNOVATIVE INSTRUMENTS – JEREMIE CASE
JEREMIE features non-grant instruments
such as loans, equity, venture capital and
guarantees. The added value of
undertaking these actions is managed in
cooperation with the EIB Group, namely
European Investment Bank (EIB) and
European Investment Fund (EIF).
INSTRUMENTE STRUCTURALE IN ROMANIA
ADDITIONAL FINANCIAL RESOURCES OF THE EU
INNOVATIVE INSTRUMENTS – JEREMIE CASE
• OBJECTIVES - access to finance, to obtain a
set of financial products specifically engineered
for Micro, Small and Medium Enterprises.
• FINANCIAL INSTRUMENTS
- Advisory and technical assistance
- Equity and venture capital
- Guarantees (both for microcredit loans and
SME loans)
INSTRUMENTE STRUCTURALE IN ROMANIA
ADDITIONAL FINANCIAL RESOURCES OF THE EU
INNOVATIVE INSTRUMENTS – JEREMIE CASE
• FUNDING
it will be possible to transform part of the grants into
financial products
• EIF COOPERATION
EIF may manage JEREMIE during the financial
perspective 2007 to 2013 on behalf of the programme
authorities. Funds will be channelled by EIF to local
financial institutions that will in turn provide
financing to SMEs.
INSTRUMENTE STRUCTURALE IN ROMANIA
ADDITIONAL FINANCIAL RESOURCES OF THE EU
INNOVATIVE INSTRUMENTS – JEREMIE CASE
• IDENTIFICATION OF THE REGIONAL PROGRAMMES
- Operational programmes will define the objectives and resources
for SME access to finance initiatives, based on analysis about
disparities in the regions
- The fund-holder (e.g. EIF) will select financial intermediaries that
will channel JEREMIE funding at local level
- Potential financial intermediaries include regional venture capital
funds, banks, guarantee schemes, micro-credit providers,
technology transfer organisations, etc..
- A funding agreement will be signed in each case with the
programming authority.
INSTRUMENTE STRUCTURALE IN ROMANIA
ADDITIONAL FINANCIAL RESOURCES OF THE EU
INNOVATIVE INSTRUMENTS – JEREMIE CASE
• ELIGIBILITY CRITERIA
- Eligible enterprises are SMEs with a maximum
of 249 employees, a maximum annual turnover
of EUR 50 million and/or a maximum annual
balance sheet of EUR 43 million.
- Preference should be given to small (< 50
persons; balance sheet/annual turnover < EUR
10 million) and micro enterprises (< 10 persons;
balance sheet/annual turnover < EUR 2 million).
INSTRUMENTE STRUCTURALE IN ROMANIA
ADDITIONAL FINANCIAL RESOURCES OF THE EU
INNOVATIVE INSTRUMENTS – JEREMIE CASE
• SCHEDULE
2006 – Preparatory phase
Member States and the European Commission, with
support from EIF, will identify the financial engineering
needs in their respective regions for the financial period
2007 - 2013. This evaluation will form part of an action
plan.
2007 – Implementation phase
On 1st January 2007, the JEREMIE initiative will enter
into the implementation phase and will become
operational.
INSTRUMENTE STRUCTURALE IN ROMANIA
Thank you!
INSTRUMENTE STRUCTURALE IN ROMANIA