EIF and Flemish Government sign Cooperation Agreement and Technical Assistance Contract

On 2 September 2005, the Flemish Government and European Investment Fund signed two agreements: a general cooperation agreement and a technical assistance contract.

The cooperation agreement aims towards developing long-term cooperation between EIB Group and the Flemish Region, through exchanges of information, workshops, staff visits and personnel secondments.

Through the technical assistance contract EIF, on behalf of the Flemish Ministry of Economy, Enterprise, Science, Innovation and Foreign Trade, will assist the Flemish Region both in evaluating programmes providing financial support to start-ups and SMEs, and also in implementing these programmes (i.e. screening potential investees, development investment guidelines, and evaluating potential EIF co-investment).

EIF will notably assist the ARKimedes programme where it will screen potential investee funds and develop operating guidelines, with a view to a possible EIF co-investment. It will also help the Vlaams Innovatiefonds develop guidelines for the screening of small and medium-size enterprises. Furthermore, it will propose possible evolutions of the current "waarborgregeling" system and will review other instruments including the NRC-fonds and the Fonds Vlaanderen Internationaal as well as a potential corporate venturing fund. These and other programmes play a crucial role in the further development and prosperity of the Flemish economy.

As at end August 2005, EIF's activity in Belgium has benefited six venture capital funds for a total investment amount of EUR 37m. As far as SME guarantees are concerned, operations have been concluded with the Participatiefonds (especially for micro-credit, i.e. SMEs of less than 10 employees), as well as with KBC, Fortis, and Beroepskrediet, with total commitments over EUR 166m.