The European Union (EU) has mandated the European Investment Fund to implement a EUR 25 million (USD 32 million) guarantee under the European Progress Microfinance Facility by issuing guarantees backed by the EU and covering microloans or guarantees supporting microloans. The guarantee is available to public and private financial institutions in the EU Member States which provide microloans or guarantees supporting microloans to people and microenterprises in the EU Member States.
The European Progress Microfinance Facility is an EU initiative established in 2009 and operating since 2010 to support entrepreneurship and employment through microfinance. Its total budget for the period January 1, 2010, through December 31, 2013 is EUR 100 million (USD 130 million).
The European Investment Fund is a public-private partnership whose shareholding structure includes the European Investment Bank, the EU represented by the European Commission and 29 financial institutions from the European Union Member States, plus Turkey and Croatia. Total assets of the fund are EUR 1.2 billion (USD 1.6 billion) at December 31, 2009.
By Jennifer Shevock, Research Associate
About European Investment Fund:
The European Investment Fund is a provider of risk financing for small and medium-sized enterprises (SMEs) throughout Europe. The fund is a public-private partnership whose shareholding structure includes the European Investment Bank, the European Union represented by the European Commission and 29 financial institutions from the European Union Member States, plus Turkey and Croatia. Total assets are EUR 1.2 billion (USD 1.6 billion) at December 31, 2009.
About European Investment Bank:
Established in 1958 under the Treaty of Rome, the European Investment Bank is the European Union’s long-term lending institution. Its owners are the Member States of the European Union. Total assets are EUR 362 billion (USD 470 billion) at December 31, 2009.
Sources and Additional Resources:
“EU implements guarantee action under Progress Microfinance Facility” July 26, 2010.
http://euroalert.net/en/news.aspx?idn=10140
European Investment Fund Progress Microfinance Facility: http://www.eif.org/what_we_do/microfinance/news/progress-microfinance-facility-questions-answers.htm
MicroCapital Universe: European Investment Fund: https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=European+Investment+Fund
MicroCapital Universe: European Investment Bank: https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=European+Investment+Bank+%28EIB%29
Browse the MicroCapital Universe and add your entry to the wiki at: https://www.microcapital.org/microfinanceuniverse/
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