Page 35 - Annual Report 2010

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Guarantees & Credit Enhancement

the implementation of the GAGF and JEREMIE mandates. EIF has signed EUR 273m under the GAGF mandate (six transactions) and EUR 304m under the JEREMIE mandate (11 transactions).

EIF’s own risk portfolio mainly consists of credit enhance-ment products. At end-2010, net own risk guarantees (in-cluding outstanding and undrawn amounts) amounted to EUR 2.6bn, which was down from EUR 2.9bn the year before as a result of guarantees having reached maturity. Underlying portfolio assets consist of a variety of financ-ing instruments to SMEs, such as commercial loans, sub-ordinated loans, venture financing, leasing receivables, micro-credit, loan guarantees, etc.

Total portfolio

EIF’s guaranteed port folio (own risk and mandated business together) amounted to EUR 14.7bn at the end of 2010, consisting of 193 transactions spread across Europe.

The guaranteed portfolio under the European Commis-sion mandates activity (CIP, MAP and G&E)  3 amounted to EUR 11.5bn at end December 2010 (corresponding to a maximum first loss liability of EUR 719m), up from EUR 10.7bn in 2009 (corresponding to a maximum first loss liability of EUR 620m) as the market demand for guar-antees under the CIP facility remained strong.

During 2010, EIF has intensified its regional business de-velopment activity and has made considerable progress in

3 CIP follows two prior EC programmes with similar objectives, the Multi-annual Programme and Growth & Employment available between 1998 and 2007.

Product breakdown

at 31 December 2010 (in EURm)

CIP (SMEG)

MAP

G&E

GAGF

JEREMIE

Subtotal (mandates)

Own funds

Total

4 351

4 792

2 402

273

304

2 580

12 121

14 701

Mandates

Own funds