The EIF and the Government of Romania have today signed an extension to the JEREMIE Romania Funding Agreement, making a further EUR 50m available to support SMEs access to finance through selected financial intermediaries.

Through the new instrument, SMEs may benefit from discounted interests and reduced collaterals for new loans destined for investments and working capital. The JEREMIE contribution is matched, for the purpose of these loans, with bank’s own resources, and together they are expected to stimulate EUR 140m of new SME lending.

The initial JEREMIE Funding Agreement was signed in 2008 and has led to the creation of two new financial instruments on the market, namely the first loss portfolio guarantee (implemented by BCR, Raiffeisen and UniCredit) and one country-focused risk capital fund (3TS Catalyst Romania). Through the facility, 2,000 new loans in total value of EUR 175m have been supported.

Commenting on the signature, the EIF Deputy Director Hubert Cottogni, Head of Regional Business Development, said: „We are pleased with the extension of funds for JEREMIE that helps SMEs to access finance in Romania. Along with the new financial instrument, JEREMIE helps create a leverage effect for the resources available to firms lending. Moreover, JEREMIE has a positive contribution to the financing ecosystem, stimulating the banking industry as well”.

„JEREMIE works as an accelerator for facilitating SMEs acces to finance. We are pleased that the EU funds available to Romania find new ways to reach the economy and support a category that makes the largest employer in the country. We are confident that the instruments manged by the EIF through JEREMIE and the new funding will continue to have a positive and real contribution to the SMEs and the communities”, stated Eugen Teodorovici, the Minister for EU Funds

About the EIF

EIF's central mission is to support Europe's micro, small and medium-sized businesses by helping them to access finance. EIF designs and develops venture and growth capital, guarantees and microfinance instruments which specifically target this market segment. In this role, EIF fosters EU objectives in support of innovation, research and development, entrepreneurship, growth, and employment. EIF’s total net commitments to private equity funds amounted to over EUR 6.9bn at end 2012. With investments in over 435 funds, EIF is a leading player in European venture due to the scale and the scope of its investments, especially in high-tech and early-stage segments. EIF’s guarantees loan portfolio totalled over EUR 4.7bn in close to 255 operations at end 2012, positioning it as a major European SME guarantees actor and a leading micro-finance guarantor.

About JEREMIE

JEREMIE (Joint European Resources for Micro to Medium Enterprises) is a joint initiative launched by the European Commission (Directorate General Regional Policy) and the European Investment Bank Group to improve access to finance for SMEs in the EU within the Structural Funds framework for the period 2007 - 2013. JEREMIE enables the EU Member States and Regions to put money from the structural funds and also national resources into holding funds that can finance SMEs in a flexible and innovative way. The new initiative aims at developing and fostering the role of entrepreneurship within the EU.

To date, at EU level, EIF manages a total of 14 JEREMIE Holding Funds, of which 7 at national level and 7 at regional level.

In Romania, the JEREMIE Holding Fund is managed by EIF and is confinanced through the European Regional Development Fund under the 2007-2013 Sectoral Operational Programme – Increase of Economic Competitiveness.

The signature follows the approval given in June 2013 by the Monitoring Committee of the Sectoral Operational Programme Increase of Economic Competitiveness to increase the JEREMIE budget, aiming in principle to finance the newly launched instrument – Funded Risk Sharing, with EUR 20m already dedicated to it from the current budget.

Press contacts:

EIF: David Yormesor, tel : +352 248 581 346 , e-mail : d.yormesor@eif.org

Ministry of European Funds of Romania:Consuela Stegarescu, e-mail consuela.stegarescu@fonduri-ue.ro