EIF and the Republic of Cyprus sign a Memorandum of Understanding to implement JEREMIE

The Joint European Resources for Micro to Medium Enterprises initiative, known as JEREMIE, is a joint initiative of the European Commission with the EIB Group, namely, European Investment Fund (EIF) and European Investment Bank (EIB), to promote Small and Medium-sized Enterprises’ (SME) access to finance through tailor-made financial engineering products in the regions of the European Union.

The Republic of Cyprus, represented by Mr. Andreas Moleskis, Permanent Secretary of the Planning Bureau, and EIF, represented by its JEREMIE Regional Head, Mr. Alexander Ando, today signed a Memorandum of Understanding (MoU) for the general framework and implementation of JEREMIE in the Republic of Cyprus in the context of the EU structural funding period 2007 - 2013. With this agreement, the Republic of Cyprus shows its readiness to adopt JEREMIE.

The Republic of Cyprus has also confirmed its intention to appoint EIF as a JEREMIE Fund Manager, with responsibility for the first JEREMIE Holding Fund for Cyprus, supported by the country's European Regional Development Fund (ERDF) allocation within the European Union’s objectives to improve a region’s competitiveness and attractiveness, as well as its levels of employment.

In 2007, EIF analysed the gaps between the supply and demand for SME finance in Cyprus. EIF will draw on the conclusions of this gap analysis and, in consultation with the Cypriot Planning Bureau, will identify the most suitable financial engineering instruments available through the JEREMIE initiative, such as guarantees, venture capital, and microfinance, with which to address the shortfalls in the supply of SME finance.

EIF will ensure that JEREMIE funds are used to greatest effect in support of SMEs, operating through a range of financial intermediaries in Cyprus. This means that EIF’s expertise and market experience in SME finance will be combined with the local knowledge of financial intermediaries to create efficient, tailor-made financial products for Cypriot SMEs.

Background Information

JEREMIE was launched in 2006 by the European Commission’s Directorate General for Regional Policy and EIF to improve access to finance for SMEs in Europe. It enables the EU Member States and their regions to use part of their ERDF structural funds allocations to support start-ups and micro-enterprises.