EIF, Regione Lombardia and Finlombarda sign a Memorandum of Understanding under the JEREMIE mandate

Regione Lombardia, Finlombarda and European Investment Fund (EIF) today signed a Memorandum of Understanding (MoU) for the general framework and implementation of JEREMIE (Joint European Resources for Micro to Medium Enterprises), improving SME Access to Finance in the Lombardy region, in the context of the EU structural funding period 2007 - 2013.

With this MoU, Regione Lombardia takes up a pioneering role, showing its readiness to promote and adopt a sophisticated financial engineering approach by concluding one of the first JEREMIE operations in the EU.

In this context, Regione Lombardia furthermore confirms its intention to jointly appoint Finlombarda and EIF as JEREMIE Fund Managers, responsible for the JEREMIE Holding Fund for the Lombardy region, supported by the region's European Regional Development Fund and European Social Fund allocation.

During the ongoing preparatory phase (2006-2007) the most suitable financial instruments will be identified to allow the implementation of the Mandate (e.g. guarantees, venture capital, micro-finance). It has assisted in establishing the structures and instruments suitable for the diffusion of the JEREMIE funds in the Lombardy region during the Mandate.
During the implementation phase (2007-2013), the Holding Manager (EIF and Finlombarda) will be responsible for the implementation and management of SME and micro-finance actions covered by the Mandate, identified during the preparatory phase; disbursements to SMEs will be possible until the end of 2015.

EIF will work with European Investment Bank to mobilise parallel lending to support JEREMIE in the Lombardy region and ensure close cooperation with the local financial sector.

EIF's Chief Executive, Francis Carpenter, said: Lombardy could be considered as a model case in the EU to create financial products that are focused on addressing gaps in SME finance in the framework of the JEREMIE initiative. We are looking forward to a dynamic and fruitful cooperation.

Background

JEREMIE - Joint European Resources for Micro to Medium Enterprises - is a joint initiative launched by the European Commission, European Investment Bank and EIF to improve access to finance for Small and Medium-sized Enterprises (SMEs) in Europe. It enables the EU Member States/regions and Acceding Countries to use part of their structural funds allocations (ERDF - European Regional Development Fund and ESF - European Social Fund 2007-2013) to support start-ups and micro-enterprises through loans, equity, venture capital and guarantees. JEREMIE's sustainable, tailor-made and revolving financial instruments, aiming to develop and foster the role of entrepreneurship within the EU support are key elements of the European Union's Lisbon Agenda and help the structural funding to deliver greater benefits to the market.

ABOUT EIF

European Investment Fund's mandate is to promote the creation, growth, and development of SMEs, in accordance with the strategy of turning the EU into a dynamic, knowledge-based economy by 2010, set out by the 2000 Lisbon Agenda. EIF provides portfolio guarantees and acquires VC fund participations benefiting SMEs. EIF acts independently and commercially, seeking an appropriate return for shareholders. EIF is part of the EIB Group.