This document is an excerpt from the EUR-Lex website
Document 52017DC0535
REPORT FROM THE COMMISSION TO THE EUROPEAN PARLIAMENT AND THE COUNCIL on financial instruments supported by the general budget according to Art.140.8 of the Financial Regulation as at 31 December 2016
REPORT FROM THE COMMISSION TO THE EUROPEAN PARLIAMENT AND THE COUNCIL on financial instruments supported by the general budget according to Art.140.8 of the Financial Regulation as at 31 December 2016
REPORT FROM THE COMMISSION TO THE EUROPEAN PARLIAMENT AND THE COUNCIL on financial instruments supported by the general budget according to Art.140.8 of the Financial Regulation as at 31 December 2016
COM/2017/0535 final
EUROPEAN COMMISSION
Brussels, 25.9.2017
COM(2017) 535 final
REPORT FROM THE COMMISSION TO THE EUROPEAN PARLIAMENT AND THE COUNCIL
on financial instruments supported by the general budget according to Art.140.8 of the Financial Regulation as at 31 December 2016
{SWD(2017) 312 final}
Table of contents
2. OVERVIEW OF THE UNIVERSE OF FINANCIAL INSTRUMENTS
3. RATIONALE FOR FINANCIAL INSTRUMENTS
3.2. Financial instruments make it possible to do more with less
3.3. Financial instruments achieve greater impact when combine d and blended with other funds
4. ANALYSIS OF THE INFORMATION REPORTED
4.1. Financial leverage of the 2007-2013 instruments
4.2. Financial levera ge of the 2014-2020 instruments
4.4. Geographic breakdown of financing achieved
1.INTRODUCTION
The Commission submits to the European Parliament and the Council its annual report on the activities relating to EU-level financial instruments for internal and external Union policy areas, supported by the Union budget and managed directly or indirectly by the Commission, as required by Article 140(8) of the Financial Regulation. 1 This is the fourth edition of the reporting under that provision. 2
The report aims to provide the European Parliament and the Council with a complete overview of financial instruments set up at EU level and their performance in both quantitative and qualitative terms, to be used as a dynamic tool for decision-making. To enhance its usefulness in this respect, the Commission has proposed, within the framework of the proposal for revision of the Financial Regulation, to merge that report and the other documents that provide information on EU financial instruments 3 − which are currently presented at different times − into a single report accompanying the draft budget. The new report − envisaged in the Commission proposal for revision of the Financial Regulation 4 − would cover not only financial instruments, as the current reporting required by the Financial Regulation, but also budgetary guarantees and financial assistance. 5 The enhanced reporting could be implemented from the entry into force of the revised Financial Regulation.
It should be noted that instruments supported by the Union budget but implemented by Member States in shared management are subject to separate reporting. For the 2007-2013 programming period, an annual summary report on the implementation of financial engineering instruments under the European Regional Development Fund (ERDF) and the European Social Fund was published by 1 October each year. 6 As of 2016, the Commission provides data summaries on progress in implementing financial instruments under shared management as required for the European Structural and Investment Funds (ERDF,ESF, CF, EAFRD and EMFF) under the CPR. 7 For the 2014-2020 programming period, the first annual summary report has been released in late 2016. 8 Similarly, financing and investment operations under the EFSI budgetary guarantee – which are not financial instruments in the sense of the Financial Regulation – are subject to separate reporting required by the EFSI Regulation. 9
The present report on EU-level instruments is accompanied by a Commission Staff Working Document (SWD) which contains the detailed information, for each financial instrument, required in points a) – l) of Article 140(8) of the Financial Regulation. In Annex 1 to the present report, this information is summarised in table form for each instrument. In addition, an overview table on page 4 of the SWD contains a synoptic list of financial instruments covered by the Report, together with legal and financial information.
2.OVERVIEW OF THE UNIVERSE OF FINANCIAL INSTRUMENTS
Financial instruments are "Union measures of financial support provided on a complementary basis from the budget in order to address one or more specific policy objectives of the Union. Such instruments may take the form of equity or quasi-equity investments, loans or guarantees, or other risk-sharing instruments, and may, where appropriate, be combined with grants." 10 Currently, 35 financial instruments are directly or indirectly managed by the Commission. Figure 1 below shows how these 35 instruments, distinguished according to type (equity, guarantee, or mixed instruments), insist on three main strategic targets: Small and Medium-sized Enterprises (SMEs) ("Strategic Target Groups"), infrastructure − in a broad sense, comprising both tangible and intangible infrastructure such as research and innovation − ("Strategic Target Sectors"), and enlargement, neighbourhood and development cooperation countries ("Strategic Target Non-EU countries"). Figure 1 also distinguishes between instruments established during the 2007-2013 Multi-annual Financial Framework (MFF) (inner orbits) and instruments established during the 2014-2020 MFF (outer orbits), and shows the relative size of instruments in terms of budget envelopes.
Figure 1: 2007-2013 and 2014-2020 Financial instruments as at 31/12/2016 (EUR million)
Notes: A list of financial instruments' acronyms can be found at the end of the present document. For SME Initiative the figure includes only the contribution from ERDF.
The Union’s overall contribution to the 2007-2013 instruments amounted to almost EUR 5,7 billion. In 2014-2020, the overall budget envelope for financial instruments amounts to almost EUR 9 billion, of which more than EUR 4,9 billion, or about half, had been committed by the end of 2016 11 .
3.RATIONALE FOR FINANCIAL INSTRUMENTS
Current economic context
The 2016 economic context, in which the financial instruments were implemented, was one of Member States still experiencing low but positive growth rates. Europe is pursuing a slow but steady recovery from the economic and financial crisis; however, structural and crisis-related weaknesses still limit the pace of overall recovery. Investment has not picked up markedly and it is not expected to rise significantly over the next couple of years, due to political uncertainty and a modest medium to long-term demand outlook. In particular, high private-sector debt levels and a high ratio of nonperforming loans still restrict banks’ lending capacity, thus hindering economic growth and financial stability. Those challenges continue to require action to further decrease the dependency of the European economy on lending by the banking sector. Access to equity funding remains limited as an alternative source of financing, especially for small businesses.
More detailed analysis of the economic and financial context in which the financial instruments are implemented, including information on funding gaps, is found in the Annex to the SWD.
Financial instruments make it possible to do more with less
In general, funds available for supporting EU policy goods are limited and therefore additional resources are needed to pursue public objectives more effectively. The Union level financial instruments contribute to encourage public finance institutions and private investors to lend to the real economy and in particular to higher risk SMEs. The financial instruments play a very useful role in catalysing additional private and public funds by sharing some of the financing risks with other public or private players, thus providing financial leverage. As Member States' public resources will remain restricted, increased use of financial instruments, complemented with budgetary guarantees and, where necessary, with grants, is needed to unlock additional investment through the EU budget, optimising the impact of the budget in financing EU policies ("do more with less").
An analysis of the financial leverage for the different types of instruments (all sectors combined) is presented below in section 4.
But the financial leverage is not the only leverage: by incentivising financial intermediaries to pursue common objectives through alignment of interest, financial instruments also ensure policy leverage in various settings and jurisdictions. In addition, institutional leverage is achieved, in particular by mobilising EU policy expertise of the institutional actors involved in the implementation chain.
Based on this rationale, financial instruments have already played a significant role by reaching out to important target groups such as SMEs, innovative enterprises and microenterprises, and supporting high-value projects in strategic sectors like transport and energy. They helped address market failures and were able to mobilise significant additional resources from the private and the public sector. 12
Financial instruments achieve greater impact when combined and blended with other funds
A key lesson learnt from the implementation of the financial instruments to date is the benefits of combining various sources of EU funding in an effort to achieve a greater impact of the volumes invested in the real economy and a greater flexibility in the implementation and target choice. Moreover, combining financial instruments with EU grants, as well as with regional or national funds, may be necessary to cover capital expenditures of projects which cannot be financed solely through EU budget financial instruments. The 2014-2020 MFF already offers such blending opportunities.
For example, the financial instruments established under Horizon 2020 for research and innovation, or COSME for SMEs, have been used in combination with a guarantee from the budget. From their launch, both COSME and H2020 financial instruments were met with strong market demand – their initial envelope was quickly depleted. It was therefore decided to enhance the instruments through exposure under the risktaking capacity of the European Fund for Strategic Investments (EFSI), 13 the first pillar of the Investment Plan for Europe. 14 15
Another example is the combining of resources from EU level financial instruments, EFSI and grants for financial assistance in the field of Connecting Europe Facility (CEF) Transport, aiming to make disbursement of CEF grants conditional upon approval for financing under EFSI, or signature of a financing agreement with a private financier or National Promotional Bank (NPB) within 12 months from signature of the grant agreement.
Looking forward, financing of projects via the so-called "investment platforms" under EFSI is another avenue that may be advocated on the grounds of the higher catalytic effect of the various sources of financing combined, i.e. EU funds, own resources of the European Investment Bank (EIB) Group, NPBs, private financing, institutional investors, sovereign wealth funds, etc, with the objective of scaling up the capital deployed to support projects.
Moreover, the Common Provisions Regulation (CPR) 16 allows Member States to combine European Structural and Investment Funds (ESIF) with Horizon 2020 and COSME resources under joint financial instruments. The Commission is recommending to facilitate the combination of instruments even further, in its proposal for the revision of the Financial Regulation. 17
4.ANALYSIS OF THE INFORMATION REPORTED
The information on financial instruments reported to the Council and the European Parliament under Article 140(8) of the Financial Regulation aims to ensure transparency and accountability in the use of taxpayers’ money. The SWD contains a wealth of information on the individual instruments, with focus on the budgetary authority's right to a full insight in the implementation of the EU budget through financial instruments. Based on this information, it is also possible to draw some overall conclusions on the degree of achievement of the objectives of financial instruments, in particular in relation to their main rationale, the financial leverage ("do more with less").
What stands out from the available evidence from the implementation so far is that the financial instruments have channelled substantial funds towards a variety of final beneficiaries in the real economy. The evidence thus suggests that financial instruments are an effective way of dealing with the financing needs of the real economy: implemented in partnership with public and private institutions, they have addressed market failures in the provision of external financing.
Graphs 1-8 in the following sections provide a visual illustration of financial instruments’ implementation in terms of budget resources, leverage, financing and investment in the real economy in the 2007-2013 and 2014-2020 MFFs as of 31 December 2016, both overall and by financial category (debt, equity and mixed instruments).
Financial leverage of the 2007-2013 instruments 18
By 31 December 2016, the Union’s overall contribution to the 2007-2013 instruments, amounting to almost EUR 5,7 billion, supported a financing volume of about EUR 81,7 billion as well as an investment volume of over EUR 134 billion benefiting strategic target groups and sectors in the areas of the internal and external EU policies. The aggregate leverage ratio achieved is 14,4 (see Graph 1).
Graph 1: 2007-2013 Financial instruments as at 31/12/2016 (EUR billion)
Instruments considered: SMEG 07, EPMF-G, RSI, RSFF, FCP-FIS, EDIF GF 1, EFSE, RSL Turkey, GIF (CIP), Marguerite, ENEF under EDIF, ENIF under EDIF, Support to FEMIP, GEEREF, EEEF, GGF, NIF, IFCA&AIF, LAIF
Graphs 2-4 below provide a breakdown by type of instrument for the period 2007-2013.
Graph 2: 2007-2013 Debt financial instruments as at 31/12/2016 (EUR billion)
Instruments considered: SMEG 07, EPMF-G, RSI, RSFF, FCP-FIS, EDIF GF 1, EFSE, RSL Turkey.
Graph 3: 2007-2013 Equity financial instruments as at 31/12/2016 (EUR billion)
Instruments considered: GIF (CIP), Marguerite, ENEF under EDIF, ENIF under EDIF, Support to FEMIP, GEEREF
Graph 4: 2007-2013 Mixed (Debt&Equity) financial instruments as at 31/12/2016 (EUR billion)
Instruments considered: EEEF, GGF, NIF, IFCA&AIF, LAIF
Financial leverage of the 2014-2020 instruments 19
In 2014-2020, a budget envelope of almost EUR 9 billion 20 is targeted to support the financing of more than EUR 88 billion, implying an average leverage of almost 10, and an investment amount of EUR 116,2 billion (see Graph 5). As mentioned in the previous report, the lower average leverage compared to the 2007-2013 generation of financial instruments reflects that the 2014-2020 financial instruments, to boost the value added of the Union contributions, include products covering higher risks than the typical 2007-2013 instruments. It should also be noted that the leverage reported for the 2007-2013 instruments is actual leverage achieved, while the leverage reported for 2014-2020 instruments is target leverage. 21 The Union contribution of EUR 4,9 billion committed by 31 December 2016 is expected to support a financing volume of about EUR 57 billion, reflecting an expected leverage ratio of about 11,5 and expected investment volumes of about EUR 85 billion. 22
Graph 5: 2014-2020 Financial instruments as at 31/12/2016 (EUR billion)
Instruments considered: COSME LGF, EU SME initiative (the figure includes only the contribution from ERDF.) , EaSI, InnovFin SME Guarantee, CCS Guarantee Facility, SLG Facility, PF4EE, Innovfin Large projects, CEF DI, RSDI, Guarantee Facility 2, EFG, CEF Equity, InnovFin Equity, NCFF, Thematic Blending
Including updates of initial budget envelope and corresponding financing and investment amounts.
Graphs 6-8 provide a breakdown by type of instrument (debt, equity, or mixed) for the period 2014-2020.
Graph 6: 2014-2020 Debt financial instruments as at 31/12/2016 (EUR billion)
Instruments considered: COSME LGF, EU SME initiative (the figure includes only the contribution from ERDF.), EaSI, InnovFin SME Guarantee, CCS Guarantee Facility, SLG Facility, PF4EE, Innovfin Large projects, CEF DI, RSDI.
Including updates of initial budget envelope and corresponding financing and investment amounts
Graph 7: 2014-2020 Equity financial instruments as at 31/12/2016 (EUR billion)
Instruments considered: EFG, CEF Equity, InnovFin Equity
Including updates of initial budget envelope and corresponding financing and investment amounts.
Graph 8: 2014-2020 Mixed (Debt&Equity) financial instruments as at 31/12/2016 (EUR billion)
Instruments considered: NCFF, Thematic Blending
Including updates of initial budget envelope and corresponding financing and investment amounts
Target groups served
The allocation of Aggregate commitments by sector are illustrated in Graphs 9 and 10 for each programming period. In the pie charts, SMEs constitute a Strategic Target Group of its own, while tangible and intangible infrastructure are grouped under Strategic Target Sectors. The reduced financing towards Strategic target non-EU regions in the current MFF is explained by the fact that some existing commitments for external instruments were extended.
Note that a direct comparison between Graph 9 and Graph 10 should take into account the fact that, by end 2016, commitments for 2007-2013 instruments have been mostly completed, whereas commitments for 2014-2020 instruments are still underway.
Graph 9: 2007-2013 FIs - Budget commitments by target as at 31 December 2016 (EUR million)
Strategic target sectors: Marguerite, EEEF, GIF (CIP), RSI, RSFF, EPMF-G, FCP -FIS
Strategic target groups: SMEG 07
Strategic target non-EU regions: IFCA, AIF, LAIF, GEEREF, EDIF GF 1, ENEF under EDIF, ENIF under EDIF, EFSE, GGF, SME RSLT, NIF, Support to FEMIP
Graph 10: 2014-2020 FIs - Budget commitments by target as at 31/12/2016 (EUR million)
Strategic target sectors: CCS Guarantee Facility, SLGF, PF4EE, RSDI, CEF Equity, NCFF, InnovFin SME Guarantee, InnovFin L-M Guarantee , InnovFin SME VC, EaSI
Strategic target groups: COSME LFG, EU SME initiative, COSME EFG
Strategic target non-EU regions: EDIF GF2, Thematic Blending
It should be noted that instruments supported by the Union budget but implemented by Member States in shared management are subject to separate reporting. For the 2007-2013 programming period, an annual summary report on the implementation of financial engineering instruments under the European Regional Development Fund (ERDF) and the European Social Fund was published by 1 October each year. 23 As of 2016, the Commission provides data summaries on progress in implementing financial instruments under shared management as required for the European Structural and Investment Funds (ERDF,ESF, CF, EAFRD and EMFF) under the CPR. 24 For the 2014-2020 programming period, the first annual summary report has been released in late 2016. 25 Similarly, financing and investment operations under the EFSI budgetary guarantee – which are not financial instruments in the sense of the Financial Regulation – are subject to separate reporting required by the EFSI Regulation. 26
Geographic breakdown of financing achieved
The financial instruments have different geographical scope, as defined by their respective legal basis; in addition, since they are essentially demand-driven, their allocation is determined by relative financing demands. The following pie charts show the distribution of financing achieved between countries, for different instrument classifications (overall and by MFF).
As mentioned above, a number of external instruments established in the 2007-2013 MFF were prolonged into the 2014-2020 MFF, and the share of financing which has flown to non-EU financing through EU financial instruments in 2014-2020 is therefore proportionally smaller, as they were already accounted for in the 2007-2013 period.
Large Western EU Member States such as in particular France and Italy seem to have in particular benefitted from the scaling up of the financial instruments in the 2014-2020 period compared to the 2007-2013 MFF, as their share of the overall achieved financing increased significantly (France from 4,9% to 39,9% and Italy from 6,9% to 15,6%). However, these high rates of growth can be explained by the abovementioned lower shares for external instruments. The remaining growth in France's share is mainly due to its participation in the 2007-2013 Project Bond Initiative and Loan Guarantee Instrument for Trans-European Transport Network Projects, which have now been merged into the 2014-2020 Risk Sharing Debt Instrument, CEF DI.
Graph 11: 2007-2013 and 2014-2020 FIs - Overall achieved financing by geographical destination as at 31/12/2016
Graph 12: 2007-2013 FIs - Achieved financing by geographical destination as at 31/12/2016
Graph 13: 2014-2020 FIs - Achieved financing by geographical destination as at 31/12/2016
As for the allocation by type of instrument (not shown in a graph), the geographic distribution of debt instruments favours large EU countries such as France, Germany and Italy, while non-EU countries (mainly in the Mediterranean Region) are well served by equity instruments and especially mixed (debt and equity) instruments
Success stories
Across the past and the ongoing programming periods, Union support has been provided to enterprises and other target groups, notably SMEs; to strategic sectors, such as research and innovation, tangible infrastructure and energy efficiency, social entrepreneurship, education and culture; and to non-EU countries, giving rise to many entrepreneurial success stories. Some examples are mentioned below:
SMEs: EFSI/COSME - Loan Guarantee Facility
ØFunding backed by the EU programme for the competitiveness of enterprises and small and medium-sized enterprises (COSME), which supports growth among riskier SMEs, has helped Polish steel wholesaler Presto Stal to introduce new services. Based in Klawkowo, northern Poland, Presto Stal’s business model is centred on its local client base. Recently, Presto Stal looked to broaden its range of services: this entailed the purchase of land for a new head office and workshop. Considerable investment was needed and was made possible under COSME. The EU-guaranteed loan ensured the company’s financial stability throughout the expansion project and the foundations are now being laid for the new buildings. As a result, Presto Stal has hired additional staff, with the number of employees expected to reach 10 in 2017. https://ec.europa.eu/commission/sites/beta-political/files/brochure-investment-plan-17x17-june17_en.pdf
Research and innovation: EFSI/Horizon 2020 - SME InnovFin Guarantee Facility
ØNot everyone can make a living doing what they enjoy most. But in the case of Matthieu Gobbi and Jérôme Giacomoni, they did exactly that. While studying at the prestigious École Polytechnique of Paris, the pair decided to make a career out of their passion for aerostats and hot-air balloons. In 1993, the two 25-year-old engineers founded Aerophile, a company specialised in the development of tethered helium balloons that are attached to the ground.
Over 20 years later, Aerophile has become the principal subsidiary of what is now the much larger Aerogroupe company. With 110 employees and impressive growth rates, Matthieu and Jérôme have been able to position Aerophile on the market as the global leader in tethered balloons, making their balloons available in different formats. With their products now available in around 30 countries in the world, Matthieu and Jérôme even had one of their balloons floating during the last Olympic Games in Rio de Janeiro.
However, at a certain point in their company’s development, they knew that it was time to diversify their product line: since then, one of their innovative idea has been to create the ‘Aerobar’, the first flying bar, allowing consumers to have a drink several meters up in the air, but also to open an amusement park, ‘le Parc du Petit Prince’, based on Antoine de Saint-Exupéry’s novel The Little Prince.
To support their company’s growth, Matthieu and Jérôme have secured a bond backed by European Investment Fund (EIF) under EFSI, the first pillar of the Investment Plan for Europe. The Investment Plan for Europe, the EU initiative aiming at generating new investments in Europe through the support of small and medium-sized innovative enterprises in combination with InnovFin SMEG, has therefore directly supported Matthieu and Jérôme in realising their latest business plans, and creating around 100 seasonal jobs.
http://www.eif.org/what_we_do/guarantees/case-studies/efsi_innovfin_aerogroupe_france.htm?lang=-en
Infrastructure and energy efficiency: The 2020 European Fund for Energy, Climate Change and Infrastructure (Marguerite)
ØThrough the Marguerite Fund, the Union’s contribution supported (among others) the acquisition of a 29% stake in AS Latvijas Gāze (LG), the vertically integrated gas company in charge of the transmission, distribution, storage, and supply of natural gas in Latvia. LG operates and maintains the Latvian gas transmission and gas distribution pipelines as well as the Inčukalns underground gas storage facility, the third largest storage facility in the EU and a strategic asset for the security of gas supply in the Baltics. LG also ensures the supply of natural gas to more than 400 000 domestic customers and provides gas to customers in Estonia, Northwest Russia and Lithuania. The company sponsors two projects of common interest which will improve the regional security of gas supply.
http://www.reuters.com/article/latvijas-gaze-ma-marguerite-eon-idUSL8N15C3D3
Infrastructure and energy efficiency: Private Finance for Energy Efficiency Instruments. (PF4EE)
ØThe Czech Komercni Banka (KB) was the first financial intermediary to sign a PF4EE deal. One of the ensuing projects was the optimisation of an SME industrial bakery's heating system, wall insulation and windows. The project had a total cost of approximately €300.000, of which 20% was covered by PF4EE and resulted in energy savings of roughly €60.000 per year.
5.CONCLUSION
The EU financial instruments have proven effective (e.g. in terms of outreach) and cost-efficient (e.g. in terms of leverage) in addressing the challenges the EU economy continues to face in terms of adequate access to finance on reasonable conditions. Financial instruments allow extending the outreach of the EU budget in the real economy, and the Commission will, in particular in the context of its upcoming proposals for the next MFF, carefully consider the possibility of boosting existing instruments or launching new ones to address market gaps or sub-optimal investment situations, where market-based financing with an EU guarantee, equity investment or other risk-sharing arrangements may be the most appropriate form of EU support.
While non-reimbursable financial support will continue to be needed, in some policy areas innovative financial instruments and/or EFSI-type budgetary guarantees can be a more appropriate and cost-efficient response. The Reflection Paper on the Future of EU Finances recalls that risk-sharing instruments can play an important role in future budget implementation, for their capability of "doing more with less" and leverage the EU budget, particularly at a time of budgetary constraints 27 .
Equally, while the case for increasing the volume of budget resources devoted to financial instruments is strong, the Commission will assess the extent to which the currently high number of instruments could be reduced. As recalled in the Reflection Paper on the Future of EU Finances, one option to address this could be a single Fund with blending possibilities and policy specific windows 28 . As shown in Figure 1, several of the current 35 instruments target the same segments and may present overlaps that risk creating confusion among beneficiaries and unnecessary administrative burdens.
Proper attention will also be given to ensuring that project promoters and target beneficiaries of financial instruments have access to information on EU-supported financing through various channels, such as for example the "Access to Finance for SMEs" portal. 29
At the same time, the Commission will continue to strike the right balance, ensuring proper accountability, reporting, monitoring and audit, while aiming at an as efficient and effective implementation as possible of financial instruments. While the current framework for the implementation of the 2014-2020 instruments includes solid provisions on technical requirements, transparency, internal control and audit and reporting, the regulatory framework should be continuously reviewed to further reduce red tape, ease implementation and further align the design of financial instruments to the most efficient and up-to-date market practices.
The Commission is conducting interim evaluations of the individual instruments as required by the sectorial legal bases. The Commission proposal for revision of the Financial Regulation, currently under negotiation with the European Parliament and the Council, draws from lessons learnt from experience to prepare the ground for the next generation of financial instruments and budgetary guarantees, in view of creating the most appropriate regulatory landscape for proper implementation to achieve the agreed policy objectives.
FINANCIAL INSTRUMENTS' ACRONYMS
CCS - GF: The Cultural and Creative Sectors - Guarantee Facility.
CEF: Connecting Europe Facility.
CEF DI: Risk sharing Debt Instrument under the Connecting Europe Facility.
CEF Equity: The Connecting Europe Facility Equity Instrument.
CIP: Competitiveness and Innovation Framework Programme.
COSME: Competitiveness of Enterprises and Small and Medium-sized Enterprises
EaSI - CBI: Employment and Social Innovation Capacity Building Investments.
EaSI - G: Employment and Social Innovation Microfinance and Social Entrepreneurship.
EEEF: European Energy Efficiency Fund.
EFG under COSME:Equity Facility for Growth under COSME.
EFSE: European Fund for Southeast Europe.
ENEF under EDIF: Enterprise Expansion Fund under the Western Balkans Enterprise Development and Innovation Facility.
ENIF under EDIF: Enterprise Innovation Fund under the Western Balkans Enterprise Development and Innovation Facility.
EPMF - G: European Progress Micro Finance - Guarantee facility.
EPMF - FCP - FIS: European Progress Micro Finance - Fonds Commun de Placement – Fonds d’Investissement Spécialisé
FEMIP: Support to the Facility for Euro-Mediterranean Investment Partnership.
FP7: Framework Programme for Research and Technological Development.
GEEREF: Global Energy Efficiency and Renewable Energy Fund.
GGF: Green for Growth Fund.
GIF under CIP: The High Growth and Innovative SME Facility under the Competitiveness and Innovation Framework Programme.
IFCA & AIF: Investment Facility for Central Asia & Asian Investment Facility.
LAIF: Latin America Investment Facility.
LGF under COSME:Loan Guarantee Facility under Competitiveness of Enterprises and Small and Medium-sized Enterprises.
NCFF: Natural Capital Financing Facility.
NIF: Neighbourhood Investment Facility.
PF4EE: Private Finance for Energy Efficiency Instruments.
RSFF: Risk-Sharing Finance Facility under the FP7.
RSI: Risk Sharing Instrument (Pilot guarantee facility for R&I-driven SMEs and Small Midcaps) under FP7.
RSL: Recovery Support Loan for Turkey.
SMEG07 under CIP:The SME Guarantee Facility 2007 under the Competitiveness and Innovation Framework Programme.
WB EDIF GF1: Guarantee Facility I under the Western Balkans Enterprise Development and Innovation Facility.
WB EDIF GF2: Guarantee Facility II under the Western Balkans Enterprise Development and Innovation Facility.
Regulation (EU, Euratom) No 966/2012 of the European Parliament and of the Council of 25 October 2012 on the financial rules applicable to the general budget of the Union and repealing Council Regulation (EC, Euratom) No 1605/2002, OJ L 298, 26.10.2012, p. 1.
COM(2016)675 final, 24.10.2016; COM(2015)565 final, 13.11.2015; COM(2014)686 final, 30.10.2014.
In addition to this report, in particular the working document based on Article 38(5) of the Financial Regulation and the document providing the information required by Article 49(1)(e) of the Financial Regulation.
See proposal for a Regulation of the European Parliament and of the Councilon the financial rules applicable to the general budget of the Union and amending Regulation (EC) No 2012/2002, Regulations (EU) No 1296/2013, (EU) 1301/2013, (EU) No 1303/2013, EU No 1304/2013, (EU) No 1305/2013, (EU) No 1306/2013, (EU) No 1307/2013, (EU) No 1308/2013, (EU) No 1309/2013, (EU) No 1316/2013, (EU) No 223/2014,(EU) No 283/2014, (EU) No 652/2014 of the European Parliament and of the Council and Decision No 541/2014/EU of the European Parliament and of the Council, COM(2016) 605 final, 14.09.2016, in particular the proposed new articles 39(4) and 242.
Defined in the Commission's proposal (see footnore 4) as assistance to Member States or third countries in the form of a loan or a credit line or any other instrument deemed appropriate to ensure the effectiveness of the support, for which the Union may borrow the necessary funds on behalf of the Union on the capital markets or from financial institutions.
The 2015 report is available at:
http://ec.europa.eu/regional_policy/sources/thefunds/fin_inst/pdf/summary_data_fei_2015.pdf
Article 46(4) of Regulation (EU) No 1303/2013.
The report, as of 31 December 2015, is available at:
http://ec.europa.eu/regional_policy/sources/thefunds/fin_inst/pdf/summary_data_fi_1420_2015.pdf
Articles 16-18 of Regulation (EU) 2015/1017. In particular, Art. 16(2) requires the EIB, in cooperation with the European Investment Fund (EIF) where appropriate, to submit an annual report to the European Parliament and to the Council on EIB financing and investment operations covered by the EFSI Regulation. The 2015 Report can be found here: http://www.eib.org/attachments/strategies/efsi_2015_report_ep_council_en.pdf
Art. 2(p) of the Financial Regulation.
This figure includes the reflows, the EFSI contribution to several financial instruments, the SME Initiative contribution from ERDF and the merger of LGTT and PBI with the CEF Debt Instrument
For example, by the end of 2016, the main EU-level 2007-2013 financial instruments dedicated to SME support (CIP-GIF, CIP-SMEG 07 and RSI) and to support to microenterprises and the self-employed (EPMF), financed with an overall budget contribution of less than EUR 1,6 billion, supported lending of almost EUR 23 billion and mobilised equity investments of over EUR 1,2 billion, enhancing access to finance for over 400 000 SMEs.
Regulation (EU) 2015/1017 of the European Parliament and of the Council of 25 June 2015 on the European Fund for Strategic Investments, the European Investment Advisory Hub and the European Investment Project Portal and amending Regulations (EU) No 1291/2013 and (EU) No 1316/2013 — the European Fund for Strategic Investments, OJ L 169, 1.7.2015, p. 1.
While EFSI is subject to specific reporting procedures set out in the EFSI Regulation, the present report does include, in the SWD, accounts of the additional resources EFSI has provided to financial instruments.
The implementation of EFSI is well on track, as 477 transactions supported by the Fund have already been approved by the European Investment Bank Group for a total investment value of EUR 183,5 billion (58% of the overall objective of EUR 315 billion by mid-2018), covering all 28 Member States and expected to benefit 427 600 SMEs and mid-caps. To further enhance the firepower of the Fund, negotiations for the proposed extension of EFSI with EFSI 2 are underway with the European Parliament and Council.
Regulation (EU) No 1303/2013 of the European Parliament and of the Council of 17 December 2013 laying down common provisions on the European Regional Development Fund, the European Social Fund, the Cohesion Fund, the European Agricultural Fund for Rural Development and the European Maritime and Fisheries Fund and laying down general provisions on the European Regional Development Fund, the European Social Fund, the Cohesion Fund and the European Maritime and Fisheries Fund and repealing Council Regulation (EC) No 1083/2006.
COM(2016) 605 final (see footnote 4).
For the 2007-2013 financial instruments, the "Aggregate commitment" is defined as the cumulated budgetary commitments made for the relevant financial instrument. Such commitments include not only used appropriations assigned in the budget exercise but also budget resources such as EEA contributions, entry tickets from third countries for participating in the financial instrument or amounts transferred within the Union budget to the relevant financial instrument."Financing achieved" corresponds to the volume of finance provided to eligible final recipients by a financial instrument through its financing chain, including the part of the Union contribution, i.e. the Aggregate Budgetary Commitment.. Finally, "Investment achieved" represents the capital investment expenditure to be undertaken by the final recipient, in many cases proxied by the total amount of financing at its disposal for the investments, including own funds.
For the 2014-2020 financial instruments, "Budget envelope" indicates the commitment appropriations envisaged for the instrument throughout its life. "Financing target" is the targeted amount of financing to eligible final recipients (part of which is Expected financing, i.e. amount of financing expected from signed operations). "Target investment" is the targeted investment expenditure to be undertaken by the final recipient (part of which is the Expected investment, i.e. amount of investment expenditure expected from signed operations).
The 2014-2020 envelope also includes appropriations of two 2007-2013 programmes (the Project Bond Initiative and the Loan Guarantee Instrument for Trans-European Transport Network Projects) which in 2016 were merged with the new Risk sharing debt instrument under the Connecting Europe Facility.
In some cases, the actual leverage exceeded the target leverage under 2007-2013 instruments; thus, the actual leverage for the 2014-2020 financial instruments may ultimately also exceed its target.
The expected volume of financing and investment are limited at this stage to amounts resulting from contracts already signed between entrusted entities and financial intermediaries/final recipients.
The 2015 report is available at:
http://ec.europa.eu/regional_policy/sources/thefunds/fin_inst/pdf/summary_data_fei_2015.pdf
Article 46(4) of Regulation (EU) No 1303/2013.
The report, as of 31 December 2015, is available at:
http://ec.europa.eu/regional_policy/sources/thefunds/fin_inst/pdf/summary_data_fi_1420_2015.pdf
Articles 16-18 of Regulation (EU) 2015/1017. In particular, Art. 16(2) requires the EIB, in cooperation with the European Investment Fund (EIF) where appropriate, to submit an annual report to the European Parliament and to the Council on EIB financing and investment operations covered by the EFSI Regulation. The 2015 Report can be found here: http://www.eib.org/attachments/strategies/efsi_2015_report_ep_council_en.pdf
Commission Reflection Paper on the Future of EU Finances, see in particular Section 4.2.2: https://ec.europa.eu/commission/publications/reflection-paper-future-eu-finances_en
See above.
https://ec.europa.eu/growth/access-to-finance_en
EUROPEAN COMMISSION
Brussels, 25.9.2017
COM(2017) 535 final
ANNEX
to the
REPORT FROM THE COMMISSION TO THE EUROPEAN PARLIAMENT AND THE COUNCIL
on financial instruments supported by the general budget according to Art.140.8 of the Financial Regulation as at 31 December 2016
{SWD(2017) 312 final}
ANNEX
The following fiches summarise information available as of 31 December 2016 on each of the items in question, as required by Article 140(8) of the Financial Regulation. More details can be found in the SWD.
It should be noted that, while item k) in Article 140(8) requires a comparison between the target and the achieved leverage, no target leverage was set for most of the 2007-2013 financial instruments. Information is thus limited to the achieved leverage, the calculation of which is described in the relevant section of the SWD. 1 At this stage, the achieved leverage is in many cases not yet final, as the number of final recipients is still increasing.. For current instruments, the target leverage is presented, together with an expected leverage, based on the amount of finance for eligible final recipients expected to result from operations that the entrusted entity has already signed with financial intermediaries (or final recipients).
A -EQUITY INSTRUMENTS
|
High Growth and Innovative SME Facility under CIP - GIF (V.1.1 SWD) Policy DG in charge: ECFIN / GROW |
The Connecting Europe Facility Equity Instrument – CEF (V. 1.2 SWD) Policy DG in charge: CNECT |
Equity Facility for Growth under COSME EFG (V.1.3 SWD) Policy DG in charge: GROW |
InnovFin Equity (Horizon 2020) (V.1.4. SWD) Policy DG in charge: RTD |
EaSi Capacity Building Investments (EaSI CBI) 2014 to 2020 (V.1.5. SWD) Policy DG in charge: EMPL |
|
|
a) Identification/ basic act |
Decision No 1639/2006/EC |
Regulation (EU) No 1316/2013 and Regulation (EU) 2015/1017 |
Regulation (EU) No 1287/2013 |
Regulation (EU) No 1291/2013 Regulation (EU) No 1290/2013 Regulation (EU) No 1296/2013 |
Regulation (EU) No 1296/2013 |
|
b) Description |
Equity instrument increasing the supply of equity for innovative SMEs in early and expansion stages |
Equity Instrument optimising the use of scarce CEF resources for smaller and more risky projects |
Equity instrument providing venture capital and mezzanine finance to SMEs in expansion and growth stages |
Equity instrument making VC and quasi-equity early-stages investments in R&I driven SMEs and small mid-caps ( including social enterprises) |
Equity instrument aiming at building up the institutional capacity of financial intermediaries through direct and indirect equity investments and loans, in order to expand further their operations, both in the microfinance and in the social entrepreneurship space. |
|
c) Financial institutions involved |
EIF |
Direct management |
EIF |
EIF |
EIF |
|
d) Aggregate budgetary commitments and payments |
EUR 600,2 m EUR 464,5 m |
EUR 100 m EUR 0 |
EUR 172,9 m EUR 56,1 m |
EUR 256,1 m EUR 234,1 m |
EUR 12,7 m EUR 10,8 m |
|
High Growth and Innovative SME Facility under CIP - GIF |
The Connecting Europe Facility Equity Instrument – CEF |
Equity Facility for Growth under COSME EFG |
InnovFin Equity (Horizon 2020) |
EaSi Capacity Building Investments (EaSI CBI) |
|
|
e) Performance |
43 agreements signed with venture capital funds, with expected financing EUR 3,08 billion for 516 eligible SMEs |
NA |
9 agreements signed with risk capital funds with expected financing of EUR 470,6 million for 64 eligible SMEs |
Agreements signed for expected financing EUR 565,1 million for approx. 300 eligible SMEs |
0 |
|
f) Evaluation of the use of any amounts returned to the instrument |
More than 90% |
NA |
EUR 10,9 m |
EUR 0,4 m |
NA |
|
g) Balance of fiduciary account 2 |
EUR 423,2 m |
NA |
EUR 51,3 m |
EUR 229 m |
EUR 10,7 m |
|
h) Revenues and repayments |
EUR 53,2 m |
- |
EUR 0,01 m |
EUR 0,4 m |
NA |
|
i) Value of equity investments |
EUR 333,5 m |
NA |
EUR 12,2 m |
EUR 8,4 m |
0 |
|
j) Impairments / called guarantees |
EUR 19,9 m |
NA |
0 |
NA |
NA |
|
k) Leverage effect |
Expected: 5 Achieved: 5,7 |
Target : 5 to 17 |
Target: between 4 and 6 Expected: 2,7 Achieved: 0,4 |
Expected: 2,21 Achieved: 0,06 |
Target : 2 3 |
|
High Growth and Innovative SME Facility under CIP - GIF |
The Connecting Europe Facility Equity Instrument – CEF |
Equity Facility for Growth under COSME EFG |
InnovFin Equity (Horizon 2020) |
EaSi Capacity Building Investments (EaSI CBI) |
|
|
l) Contribution to achievement of policy objectives |
More than 1,4 billion EUR of financing supported for 484 eligible SMEs; Approx. EUR 3,6 billion of investments supported. |
NA |
Expected volume of equity investments of EUR 470,6 million into 64 eligible final recipients; Investments of EUR 64 million into 12 SMEs in 7 countries by the end of 2016 |
The target volume of investments into envisaged 1500 eligible final recipients amounts to EUR 2 900 million; The expected volume of financing amounts to EUR 565,1 million for 300 eligible final recipients; The achieved volume of financing amounts to EUR 15 million for 8 eligible final recipients; Investments by SMEs amount to approx. EUR 15 million. |
The expected volume of the EUR 16 million available for investments into the 8 to 10 envisaged eligible financial intermediaries is expected to generate around EUR 32 million investments into the intermediaries. |
B -GUARANTEE INSTRUMENTS
|
SME Guarantee Facility under CIP — SMEG07 (V.2.1 SWD) Policy DGs in charge: GROW and ECFIN |
European Progress Micro-finance Guarantee — EPMF-G (V.2.2 SWD) Policy DGs in charge: EMPL |
Pilot guarantee facility for R&I-driven SMEs and small midcaps — RSI (V.2.5 SWD) Policy DG in charge: RTD |
EaSI Micro-finance and Social Enterprise
(V.2.3 SWD) Policy DG in charge: EMPL |
Loan Guarantee Facility under COSME — LGF (V.2.4 SWD) Policy DG in charge: GROW 4 |
|
|
a) Identification / basic act |
Decision No 1639/2006/EC |
Decision No 283/2010/EU |
Decision No 1982/2006/EC |
Regulation (EU) No 1296/2013 |
Regulation (EU) No 1287/2013 |
|
b) Description |
Guarantee instrument improving SMEs’ access to finance |
Guarantee instrument improving individuals’ and micro-enterprises’ access to microfinance |
Guarantee instrument improving RDI investments’ access to loan finance |
Guarantee instrument promoting employment and social inclusion by increasing access to micro-finance and supporting social enterprises |
Instrument providing guarantees and other risk-sharing arrangements to improve SMEs’ access to finance |
|
c) Financial institutions involved |
EIF |
EIF |
EIF |
EIF |
EIF |
|
d) Aggregate budgetary commitments and payments |
EUR 649,9 m EUR 424,7 m |
EUR 23,6 m EUR 22,5 m |
EUR 270 m EUR 270 m |
EUR 68,8 m EUR 42,2 m |
EUR 375,5 m EUR 183,0 m |
|
SME Guarantee Facility under CIP — SMEG07 |
European Progress Micro-finance Guarantee — EPMF-G |
Pilot guarantee facility for R&I-driven SMEs and small midcaps — RSI |
EaSI Micro-finance and Social Enterprise
|
Loan Guarantee Facility under COSME — LGF |
|
|
e) Performance |
70 agreements signed with 52 financial intermediaries for EUR 23,1 billion expected financing, supported by
|
36 agreements signed for EUR 286,48 million expected financing, supported by
|
35 agreements signed; EUR 3,3 billion expected financing for 3000 eligible final recipients; EUR 2,33 billion achieved financing for 4 146 eligible final recipients
|
40 agreements signed for EUR 753,58 million expected financing to 55 815 eligible final recipients, supported by
40 agreements signed for EUR 157,96 million achieved financing to 12 804 eligible final recipients, supported by
|
67 agreements signed with 61 financial intermediaries for EUR 18,9 billion expected financing to around 291 000 SMEs |
|
f) Evaluation of use of amounts returned to the instrument |
More than 60% |
All proceeds received were used |
EUR 64,1 m |
NA |
NA |
|
g) Balance of fiduciary account 5 |
EUR 99,6 m |
EUR 9,59 m |
EUR 181,8 m 6 |
EUR 38,8 m |
EUR 160,3 m |
|
h) Revenues and repayments |
EUR 21,8 m |
EUR 1,0 m aggregate revenues |
EUR 65,9 m |
EUR 0,02 m aggregate revenues |
EUR 0,29 m |
|
SME Guarantee Facility under CIP — SMEG07 |
European Progress Micro-finance Guarantee — EPMF-G |
Pilot guarantee facility for R&I-driven SMEs and small midcaps — RSI |
EaSI Micro-finance and Social Enterprise
|
Loan Guarantee Facility under COSME — LGF |
|
|
i) Value of equity investments |
NA |
NA |
NA |
NA |
NA |
|
j) Impairments / called guarantees |
EUR 292,6 m |
EUR 12,1 m |
EUR 14,7 m |
EUR 0,55 m |
EUR 4,8 m |
|
k) Leverage effect |
Expected: 44 Achieved: 40 |
Target: 6,67 Expected: 12,1 Achieved: 9,98 |
Expected: 12 Achieved: 8,5 |
Target: 5,5 Expected: 11 Achieved: 2,3 |
Target: 20 to 30 Expected: 32,9 Achieved: 9,7 |
|
l) Contribution to achievement of policy objectives |
EUR 21,1 billion of new financing supported, reaching 385 772 SMEs with 469 269 loans; EUR 30,9 billion of investments supported; 23 countries covered; 385 772 jobs created/maintained. |
EUR 235,63 million of new micro-loan financing supported, reaching 19 713eligible final recipients with 20 980 loans; EUR 336,5 million of investments supported; 18 Member States covered; 37 038 jobs supported. |
EUR 2,3 billion of new loan financing supported, reaching 4 146 eligible final recipients; Nearly EUR 4,7 billion of investments supported; 17 countries covered. |
EUR 157,9 million of new financing supported, reaching 12 804 final recipients; EUR 225,6 million of investments supported; 20 countries covered. |
EUR 5,5 billion of new financing supported, reaching 143 344 final recipients; EUR 7,8 bn of investments supported; 21 countries covered. |
|
SMEs & Small Midcaps R&I Loans Service under H2020 — InnovFin SMEG (V.2.6 SWD) Policy DG in charge: RTD 7 |
Cultural and Creative Sectors Guarantee Facility – CCSGF (V. 2.7 SWD) Policy DGs in charge: CNECT and EAC |
Student Loan Guarantee Facility (Erasmus+) — SLGF (V.2.8 SWD) Policy DG in charge: EAC |
Private Finance for Energy Efficiency Instruments -PF4EE (V.2.9 SWD) Policy DG in charge: CLIMA |
|
|
a) ID/basic act |
Regulation (EU) No 1291/2013 + 1290/2013 |
Regulation (EU) No 1295/2013 |
Regulation (EU) No 1288/2013 |
Regulation (EU) No 1293/2013 |
|
b) Description |
Guarantee instrument promoting R&I-driven SMEs’ and small midcaps’ access to risk finance |
Guarantee instrument strengthening the competitiveness of the cultural and creative sector, supporting financial institutions' loans to SMEs active in the CCS sector, |
Guarantee instrument supporting mobility, equity and study excellence via loans to mobile students for master’s studies |
Guarantee instrument (pilot initiative) aiming at providing access to adequate and affordable commercial financing for eligible energy efficiency (EE) investments |
|
c) Financial institutions involved |
EIF |
EIF |
EIF |
EIB |
|
d) Aggregate budgetary commitments and payments |
EUR 534,5 m EUR 478,2 m |
EUR 14,8 m EUR 5,98 m |
EUR 115,7 m EUR 21,2 m |
EUR 70,0 m EUR 19,1 m |
|
e) Performance |
109 agreements signed with 71 financial intermediaries; EUR 8,6 billion expected financing to around 24 000 SMEs and small mid caps,; EUR 1,94 billion achieved financing to 5 682 SMEs and small mid caps. |
NA |
6 agreements signed for EUR 160,0 million of financing expected for 11 500 final recipients supported by
|
NA (6 final recipients ; 6 agreements signed) |
|
SMEs & Small Midcaps R&I Loans Service under H2020 — InnovFin SMEG 8 |
Cultural and Creative Sectors Guarantee Facility – CCSG |
Student Loan Guarantee Facility (Erasmus+) — SLGF |
Private Finance for Energy Efficiency Instruments -PF4EE |
|
|
f) Evaluation of the use of any amounts returned to the instrument |
EUR 1,89 m |
NA |
NA |
NA |
|
g) Balance of fiduciary account 9 |
EUR 467 m |
EUR 5,67 m |
EUR 15,9 m |
EUR 17,99 m |
|
h) Revenues and repayments |
EUR 2,17 m |
EUR 0 |
EUR 0,1 m |
EUR 0,006 m |
|
i) Value of equity investments |
NA |
NA |
NA |
NA |
|
j) Impairments / called guarantees |
EUR 2,3 m |
EUR 0 |
EUR 0 |
EUR 0 |
|
k) Leverage effect |
Target: 9 Expected: 9,6 Achieved: 2,2 |
Target: 5,7 |
Target: 5,7 Expected: 1,4 Achieved: 0,03 |
Target: 8 Achieved : 13 |
|
l) Contribution to achievement of policy objectives |
EUR 1 944 m of new loan financing supported, reaching 5 682 final recipients; EUR 2,8 bn of investments supported. |
EUR 689 m of targeted new financing for the cultural and creative industries. |
EUR 3,1 m of financing already made for 247 Master students; Support transnational mobilty for Master students. |
Targeted financing by EIB amounts to 430 m, with associated EE targeted investment around EUR 540 m; Also provides a piloting experience for possible upscaling. |
C -RISK-SHARING INSTRUMENTS
|
Risk-Sharing Finance Facility –RSFF (V.3.1 SWD) Policy DG in charge: RTD |
Horizon 2020 Loan Services for R&I Facility — InnovFin (V.3.2 SWD) Policy DG in charge: RTD |
Risk Sharing Debt Instrument under the Connecting Europe Facility – CEF DI (V. 3.3 SWD) Policy DGs in charge: MOVE, ENER, CNECT |
Natural Capital Financing Facility — NCFF
(V.3.4 SWD)
|
SME Initiative (V.3.5 SWD) Policy DGs in charge: ECFIN, RTD, GROW, REGIO, AGRI |
|
|
a) ID/basic act |
Decision No 1982/2006/EC |
Regulation (EU) No 1291/2013 + 1290/2013 |
Regulation (EU)
|
Regulation (EU) No 1293/2013 |
Regulations (EU) No 1287/2013, No1291/2013 and 1303/2013 |
|
b) Description |
Debt financing instrument improving access to risk finance for final RDI recipients |
Debt financing instrument improving access to debt financing for final recipients investing in R&I |
Risk-sharing instrument for loans/guarantees/project bonds aiming at facilitating infrastructure projects' financing |
Risk-sharing instrument to finance revenue-generating investments in natural capital |
Risk-sharing instrument to complement and exploit synergies between existing national and EU SME support programmes, generating additional lending to SMEs |
|
c) Financial institutions involved |
EIB |
EIB |
EIB |
EIB |
EIB, EIF |
|
d) Aggregate budgetary commitments and payments |
EUR 960,7 m EUR 960,7 m |
EUR 796 m EUR 786 m |
EUR 688,7 m EUR 479,4 m |
EUR 50 m EUR 11,7 m |
EUR 23,3 m 10 EUR 19,3 m |
|
Risk-Sharing Finance Facility –RSFF |
Horizon 2020 Loan Services for R&I Facility — InnovFin |
Risk Sharing Debt Instrument under the Connecting Europe Facility – CEF DI |
Natural Capital Financing Facility — NCFF |
SME Initiative |
|
|
e) Performance |
Agreements signed for EUR 11,3 billion expected financing to 114 eligible final recipients; achieved financing EUR 10,2 billion for 112 eligible final recipients |
Agreements signed for EUR 5,9 billion expected financing to 97 eligible final recipients; achieved financing EUR 3,5 billion for 72 eligible final recipients. |
Projects from merged Instruments - LGTT and PBI (Agreements signed for EUR 13,8 billion to 11 final recipients); 1 transport project (from former Instrument LGTT) refinanced, 1 guarantee agreement signed with a bank (nov. 2016) for EUR 150 million, but no new investments yet. |
NA (no operations yet) |
NA yet |
|
f) Evaluation of the use of any amounts returned to the instrument |
EUR 476 million have been assigned to InnovFin Horizon 2020 Loan Services for R&I Facility |
EUR 6 million have been assigned to InnovFin Horizon 2020 Loan Services for R&I Facility |
NA |
NA |
NA |
|
g) Balance of fiduciary account 11 |
EUR 712,3 m 12 |
EUR 698 m |
EUR 492,9 m |
EUR 10,25 m |
NA |
|
h) Revenues and repayments |
EUR 476 m |
EUR 31,5 m |
EUR 13,4 m |
NA |
NA |
|
i) Value of equity investments |
NA |
NA |
NA |
NA |
NA |
|
j) Impairments / called guarantees |
EUR 10,7 m |
EUR 91,43 m |
NA |
NA |
EUR 0,8 m |
|
Risk-Sharing Finance Facility –RSFF |
Horizon 2020 Loan Services for R&I Facility — InnovFin |
Risk Sharing Debt Instrument under the Connecting Europe Facility – CEF DI |
Natural Capital Financing Facility — NCFF |
SME Initiative |
|
|
k) Leverage effect |
Target: 5 to 6,5 Expected : 12 Achieved: 10,6 |
Target: 12,5 Expected: 7,5 Achieved: 4,5 |
Target: 6 to15 Expected: 22,6 Achieved: 20,1 |
Target: 2 to 4 |
Target: 7 Expected: 7 Achieved: 3,2 |
|
l) Contribution to achievement of policy objectives |
EUR 10,2 billion of new risk-financing supported, reaching 112 eligible final recipients; EUR 20,4 billion of investments supported; 25 countries covered. |
EUR 3,5 billion of new risk-financing supported, reaching 72 eligible final recipients; EUR 10,2 billion of investments supported; 23 countries covered. |
EUR 13,8 billion of investments supported; 7 countries covered. |
Targeted financing of EUR 120 to EUR 240 million to promote biodiversity and climate change adaptation. |
Targeted financing of EUR 5 723 million to be generated for all Spanish regions. |
D -DEDICATED INVESTMENT VEHICLES
|
European Progress Micro-finance Facility — FCP-FIS (V.4.1 SWD) Policy DGs in charge: EMPL |
The 2020 European Fund – Marguerite
(V.4.2 SWD)
|
European Energy Efficiency Fund — EEEF
(V.4.3 SWD)
|
|
|
a) ID/basic act |
Decision No 283/2010/EU |
Regulation (EC) No 680/2007 and Decision C(2010)941 |
Regulation (EU) No 1233/2010 |
|
b) Description |
Unincorporated coownership of securities and other eligible assets geared to increasing access to micro-finance |
Pan-European equity fund for supporting long-term infrastructure investment in EU transport, energy and renewables sectors |
Specialised investment fund (SICAV SIF) investing in energy efficiency, renewable energy projects and clean urban transport |
|
c) Financial institutions involved |
EIF (management company) EIB (co-investor) |
Co-investors: France (CDC), Italy (CdP), Germany (KfW), Spain (ICO), Poland (PKO) and EIB |
EIB (entrusted entity, investor), Deutsche Bank (investment manager, investor), CDP (investor) |
|
d) Aggregate budgetary commitments and payments |
EUR 80 m EUR 80 m |
EUR 80 m EUR 43,7 m |
EUR 146,3 m EUR 116,2 m |
|
e) Performance |
50 agreements signed for EUR 402,3 million expected financing to more than 60 062 eligible final recipients |
EUR 710 million of expected financing in the form of equity (at the level of the Marguerite fund) for 20 to 30 projects; Currently 12 projects financed for a total equity commitment of EUR 455 million at fund level (equity at project level: EUR 1,8 billion) |
EUR 237 million of expected financing, in the form of equity (at the level of the EEE fund) for 20 to 30 projects; note that EEEF is open for new investors and can grow further |
|
f) Evaluation of use of amounts returned to the instrument |
NA |
NA |
NA |
|
g) Balance of fiduciary account 13 |
NA |
NA |
EUR 8 m |
|
European Progress Micro-finance Facility — FCP-FIS |
The 2020 European Fund – Marguerite |
European Energy Efficiency Fund — EEEF |
|
|
h) Revenues and repayments |
EUR 0 (from a Budget point of view) Nota : EUR 3,5 m revenues in 2016 and EUR 16,8 m aggregate revenues EUR 15,1 m repayments in 2016 and EUR 24,8 m aggregate repayments |
EUR 0 |
Revenues for 2016: EUR 4,5 m (unaudited figure)
|
|
i) Value of equity investments |
NAV: EUR 75,1 m |
NAV: EUR 54 m |
NAV: EUR 97,1 m |
|
j) Impairments / called guarantees |
EUR 0 |
EUR 0 |
EUR 0 |
|
k) Leverage effect |
Target: 2,83 Expected: 5,02 Achieved: 2,95 |
Achieved: 42 |
Achieved: 2,2 |
|
l) Contribution to achievement of policy objectives |
EUR 236,06 million of new financing supported, reaching 32 428 final recipients with 35 241 micro-loans; EUR 337,2 million of investments supported; 16 Member States covered. |
EUR 455 million of new financing supported in the form of equity, for 12 projects (final recipients); EUR 5,4 billion of total investments supported (equity and debt); 9 countries covered. |
EUR 121 million of new financing supported in the form of equity to 11 projects, accounting for EUR 224 million total investment. |
E -
FINANCIAL INSTRUMENTS IN THE ENLARGEMENT COUNTRIES
|
Guarantee Facility under the WB EDIF 14 — GF WB 1 (V.5.1 SWD) Policy DG in charge: NEAR |
Guarantee Facility II under the WB EDIF 15 — GF WB 2 (V.5.2 SWD) Policy DG in charge: NEAR |
Enterprise Expansion Fund — ENEF 16 (V.5.3 SWD) Policy DG in charge: NEAR |
|
|
a) ID/basic act |
Council Regulation (EC) No 1085/2006 |
Regulation (EC) No 231/2014 |
Council Regulation (EC) No 1085/2006 |
|
b) Description |
Guarantee instrument to create conditions for emergence and growth of innovative and high-potential SMEs in the Western Balkans |
Direct continuation of WB EDIF GF 1; Guarantee instrument to create conditions for emergence and growth of innovative and high-potential SMEs in the Western Balkans |
Equity instrument financing development and expansion capital in established SMEs in the Western Balkans |
|
c) Financial institutions involved |
EIF |
EIF |
EIF (trustee), EBRD, DEG, OeEB |
|
d) Aggregate budg. commitments and payments |
EUR 21,9 m EUR 21,9 m |
EUR 17,5 m EUR 10 m |
EUR 11 m EUR 10,4 m |
|
e) Performance |
6 contracts signed with banks for expected financing of EUR 117,9 million to final recipients |
Financing expected: EUR 107 million |
EUR 97 million (approx.) of expected financing, in the form of equity (at the level of the ENEF fund) for approx. 15 final recipients ; achieved financing: EUR 4,75 m for 3 final recipients. |
|
Guarantee Facility under the WB EDIF 17 — GF WB 1 |
Guarantee Facility II under the WB EDIF 18 — GF WB 2 |
Enterprise Expansion Fund — ENEF 19 |
|
|
f) Evaluation of use of amounts returned to the instrument |
EUR 0,003 m |
NA |
NA |
|
g) Balance of fiduciary account 20 |
EUR 19,34 m |
EUR 9,6 m |
EUR 9,79 m |
|
h) Revenues and repayments |
EUR 0,02 m |
EUR 0 |
NA |
|
i) Value of equity investments |
NA |
NA |
EUR 1,22 m |
|
j) Impairments / called guarantees |
EUR 0,51 m |
EUR 0 |
EUR 0 |
|
k) Leverage effect |
Target: 7 Achieved: 5,4 |
Target: 4 to 5,2 Expected: 6,1 |
Target: 10 Expected: 8.8 Achieved: 0,4 |
|
l) Contribution to achievement of policy objectives |
EUR 117,9 million of achieved financing for 1430 final recipients. |
Not available yet (6 operations with financial intermediaries (banks) are in the pipeline). |
EUR 4,75 million of new financing supported for 3 recipients. |
|
Enterprise Innovation Fund -ENIF 21 (V.5.4 SWD) Policy DG in charge: NEAR |
European Fund for Southeast Europe — EFSE (V.5.5 SWD) Policy DG in charge: NEAR |
Green for Growth Fund — GGF (V.5.6 SWD) Policy DG in charge: NEAR |
SME Recovery Support Loan for Turkey — RSL (V.5.7 SWD) Policy DG in charge NEAR |
|
|
a) ID/basic act |
Council Regulation (EC) No 1085/2006 |
Council Regulation (EC) No 1085/2006 |
Council Regulation (EC) No 1085/2006 |
Council Regulation (EC) No 1085/2006 |
|
b) Description |
Equity instrument financing earlystage innovative SMEs in the Western Balkans |
Public-private partnership to assist the development of the private sector in the enlargement region by supporting SMEs |
Innovative fund to provide financing for energy efficiency and renewable energy projects in southeast Europe and Turkey |
Co-financing instrument to mitigate the impact of the crisis and support SMEs in order to develop the Turkish economy |
|
c) Financial institutions involved |
EIF (trustee), EBRD, KfW |
EIF (trustee) Other investors (e,g, EBRD, KfW, EIB) |
EIF (trustee) Co-investors (e,g, EIB, EBRD, KfW) |
EIB (risksharing partner) Halkbank, Akbank |
|
d) Aggregate budg. commitments and payments |
EUR 21,2 m EUR 21,2 m |
EUR 87,68 m EUR 87,68 m |
EUR 38,6 m EUR 38,6 m |
EUR 30 m EUR 30 m |
|
e) Performance |
EUR 50 million of expected financing, in the form of equity (at the level of the ENIF fund); achieved financing : EUR 1,18 m (for 5 recipients) |
EU share of EUR 113,7 million committed to the EFSE fund; achieved financing : 120 695 active loans in SEE and 702 790 loans disbursed since inception in Dec 2005 for a total amount of EUR 4.3 billion. |
EU share of EUR 38,6 million committed to the GGF fund , with EUR 411,7 million expected financing and EUR 429,9 million achieved financing for 16 701 final recipients. |
EUR 299,6 million of financing already provided to 265 final recipients |
|
f) Evaluation of use of amounts returned to the instrument |
NA |
NA |
NA |
NA |
|
Enterprise Innovation Fund -ENIF |
European Fund for Southeast Europe — EFSE |
Green for Growth Fund — GGF |
SME Recovery Support Loan for Turkey — RSL |
|
|
g) Balance of fiduciary account 22 |
EUR 19,6 m |
NA |
NA |
EUR 18,06 m |
|
h) Revenues and repayments |
NA |
NA |
NA |
EUR 18,06 m |
|
i) Value of equity investments |
EUR 0,44 m |
EUR 113,7 m (at EFSE level) |
EUR 39,3 m (at GGF level) |
NA |
|
j) Impairments / called guarantees |
EUR 0 |
EUR 0 |
NA |
none |
|
k) Leverage effect |
Expected: 2 Achieved : 0,06 |
Achieved: 49 |
Target: 10,7 Expected: 12,6 Achieved: 11,1 |
Target: 10 Achieved: 10 |
|
l) Contribution to achievement of policy objectives |
EUR 50 million of expected financing in the form of equity (at the level of the ENIF fund); achieved financing : EUR 1,18 m (for 5 recipients) |
EUR ,4,3 billion of new financing supported for 702 790 final recipients; EFSE has been an international role model for micro-finance (see SWD). |
EUR 429,9 million achieved financing for 16 701 final recipients. 1 548 436 MWh/yr, annualised energy savings; CO2 reduction of 389 434 tonnes/yr. |
EUR 299,6 million of new financing supported for 265 eligible final recipients, aimed at creating more than 4 000 new jobs. |
F - FINANCIAL INSTRUMENTS IN NEIGHBOURHOOD AND DCI COUNTRIES
|
Neighbourhood Investment Facility – NIF (V.6.1 SWD) Policy DG in charge: NEAR |
Investment Facility for Central Asia — IFCA and Asian Investment Facility — AIF (V.6.2 SWD) Policy DG in charge: DEVCO |
Latin America Investment Facility — LAIF (V.6.3 SWD) Policy DG in charge: DEVCO |
Support to the Facility for FEMIP (V.6.4 SWD) Policy DG in charge: NEAR |
GEEREF (V.6.5 SWD) Policy DG in charge: DEVCO |
Thematic blending (ElectriFI, AgriFI, Climate Change) (V.6.6 SWD) Policy DG in charge: DEVCO |
|
|
a) ID/basic act |
Regulation (EC) No 1638/2006 Regulation (EU) No 232/2014 Regulation (EU) 236/2014 |
Regulation (EC) No 1905/2006 Regulation (EU) No 233/2014 Regulation (EU) No 236/2014 |
Regulation (EC) No 1905/2006 Regulation (EU) No 233/2014 Regulation (EU) No 236/2014 |
Regulation (EC) No 1638/2006 |
Regulation (EC) No 1905/2006 Regulations (EU) No 233/2014 Regulations (EU) 236/2014 |
Regulation (EC) No 1905/2006 Regulation (EU) No 233/2014 Regulation (EU) No 236/2014 |
|
b) Description |
Instrument promoting investments with a focus on energy, transport, environment, SMEs and socio-economic development |
IFCA: Instrument promoting investments and key infrastructures with a focus on energy and environment AIF: Instrument promoting investments and key infrastructure with a focus on climate change and ‘green’ investments, SMEs. |
Instrument aimed at promoting investments and infrastructures in sectors such as transport, energy, environment and social sectors in Latin America |
Instrument providing capital to the private sector on terms not otherwise locally available |
Financing vehicle aimed at promoting energy efficiency and renewable energy projects through regional private equity funds |
ElectriFI aims at bridging the gaps in structuring and financing of investments, addressing the lack of access to clean, reliable and affordable electricity and energy services all over the world. AgriFI main aim is to develop inclusive and sustainable agriculture based value chains. Climate Change actions aim at developing local climate strategies into action plans, budgets, and investment projects. |
|
c) Financial institutions involved (Lead FIs for DCI instruments) |
EIB, EBRD, CEB, NIB, NEFCO, AFD, KfW, AECID, SIMEST |
EIB, EBRD, KfW, AFD |
EIB, AFD, AECID, KfW |
EIB |
EIF (trustee) EIB, |
AFD, FMO, KfW,PROPARCO |
|
Neighbourhood Investment Facility – NIF |
Investment Facility for Central Asia — IFCA and Asian Investment Facility — AIF |
Latin America Investment Facility — LAIF |
Support to the Facility for FEMIP |
GEEREF |
Thematic blending (ElectriFI, AgriFI, Climate Change) |
|
|
d) Aggregate budgetary commitments and payments |
EUR 1 678,64 m
|
EUR 349 m
|
EUR 305 m
|
EUR 224 m
|
EUR 81,1 m
|
EUR 270,3 m
|
|
e) Performance |
EUR 16,95 billion of approved financing for 123 projects |
EUR 4,1 billion of total investments financed, out of which EUR 2 672 m financing approved (285 m of EU contribution – IFCA 143 m, AIF 142 m - + 2 387 m – IFCA 605 m, AIF 1782 m) through european financial institutions, for 46 projects (IFCA: 22, AIF: 24) |
EUR 7,5 billion of total investments financed, out of which EUR 3 946 m financing approved (274 m of EU contribution + 3 672 m) through EFIs for 33 projects |
EUR 33,1 m allocated to technical assistance operations; EUR 180,3 million financing allocated to 28 risk capital operations for a total projects cost of nearly EUR 4,4 billion; EIB-cofinancing of EUR 2,3 billion. |
EUR 222 m expected financing to eligible projects; achieved financing: EUR 148 m for 84 projects.
|
Not yet available ; first deal closed under EDFI ElectriFI to invest USD 2,5 million in convertible notes in a project in Haiti |
|
f) Evaluation of use of amounts returned to the instrument |
NA |
NA |
NA |
NA |
NA |
NA |
|
g) Balance of fiduciary account 23 |
See details of the 10 different fiduciary accounts in SWD 2, sect 6.1 |
MIFA ‘Debt Fund’ (under IFCA & AIF): EUR 9,23 m |
NA |
EUR 45,37 m |
EUR 73,58 m |
EUR 30,3 m |
|
Neighbourhood Investment Facility – NIF |
Investment Facility for Central Asia — IFCA and Asian Investment Facility — AIF |
Latin America Investment Facility — LAIF |
Support to the Facility for FEMIP |
GEEREF |
Thematic blending (ElectriFI, AgriFI, Climate Change) |
|
|
h) Revenues and repayments |
EUR 0 |
NA |
NA |
EUR 13,7 m |
NA |
NA |
|
i) Value of equity investments |
SANAD: USD 8,76 m
|
EUR 9,23 m (MIFA, see above) |
NA |
EUR 81,4 m |
EUR 72,3 m |
NA |
|
j) Impairments / called guarantees |
EUR 0 |
NA |
NA |
EUR 8,9 m |
NA |
NA |
|
k) Leverage effect |
Target: 4-5 Expected: 6,48 Achieved: 9,1 |
Target: 4-5 Achieved: 14,4 (IFCA: 6,9 - AIF: 22,2) |
Target: 4-5 Achieved: 27,5 |
Achieved (2007-14): 6,0 Achieved (2014): 26,8 |
Target: 2,7
|
Target ElectriFI: 7,4 Target AgriFI: 7,8 |
|
l) Contribution to achievement of policy objectives |
EUR 29,22 billion of investments supported (total project costs); 123 projects financed acounting for EUR 16,95 billion achieved financing. |
EUR 4,1 billion of investments supported (IFCA: 970 m, AIF: 3 152 m); 17 countries covered (IFCA: 5, AIF: 12) |
More than EUR 7,5 billion investments supported; 11 countries covered. |
Nearly EUR 4,4 billion of investments supported; 6 countries covered. |
EUR 148 million of new financing invested in 11 regional private equity or corporate funds; Approx. EUR 3 billion of investments/projects supported. |
The potential investment linked to the proposals retained so far under EDFI ElectriFI would amount to EUR 26.6 million, for an installed capacity of 38.3 MW. |
The current Financial Regulation and its Rules of Application require a unified approach to reporting on leverage. As the provisions applying to financial instruments entered into force in January 2014, the approach is applied only to 2014-2020 financial instruments.
Including all assets: current and non-current term deposits and bonds, equity investment and foreign currencies held on the accounts of the financial instrument
The target leverage figure refers to envisaged investments to financial intermediaries
Data including EFSI, for details see the SWD document.
Including all assets: current and non-current term deposits and bonds, equity investment and foreign currencies held on the accounts of the financial instrument
Please note that the figure provided is also included in RSFF.
Data including EFSI, for details see the SWD document.
Data including EFSI, for details see the SWD document.
Including all assets: current and non-current term deposits and bonds, equity investment and foreign currencies held on the accounts of the financial instrument
H2020 and COSME LGF figures only, do not include ERDF contribution (see SWD for details).
Including all assets: current and non-current term deposits and bonds, equity investment and foreign currencies held on the accounts of the financial instrument
Please note that the figure provided does not include the RSI part (EUR 181 million).
Including all assets: current and non-current term deposits and bonds, equity investment and foreign currencies held on the accounts of the financial instrument
Western Balkans Enterprise Development and Innovation Facility (WB EDIF).
Western Balkans Enterprise Development and Innovation Facility (WB EDIF).
Under the WB EDIF.
Western Balkans Enterprise Development and Innovation Facility (WB EDIF).
Western Balkans Enterprise Development and Innovation Facility (WB EDIF).
Under the WB EDIF.
Including all assets: current and non-current term deposits and bonds, equity investment and foreign currencies held on the accounts of the financial instrument
Under the WB EDIF.
Including all assets: current and non-current term deposits and bonds, equity investment and foreign currencies held on the accounts of the financial instrument
Including all assets: current and non-current term deposits and bonds, equity investment and foreign currencies held on the accounts of the financial instrument