1 Instruments and procedures to finance social economy Milan, 22 November 2006

2 Cooperative Credit System in Lombardy Banks: 49 Branches: 600 Employees: Investments: 15 billion euros Direct funding: 20 billion euros

3 Framework Agreement between “Confcooperative Lombardia” and Lombardy Cooperative Credit Banks

4 CHARACTERISTICS: Flexibility Personalization Safeguarding specificities of individual Cooperative Credit Banks (CCB) A structure created inside “Confidi” and available in each CCB for exchanging information and providing counseling

5 Agreement among Federcasse Federsolidarietà Consorzio Nazionale CGM Actions for the capitalization of social cooperatives

6 NATURAL PERSONS PARTNERS NATURAL PERSONS PARTNERS Chirograph Loan Amount: Maximum duration Rate Inquiry expenses Instalment collection exp. Account opening/closing Advance repayment € 3.000,00 60 months Euribor Variable no more than 0,70% Zero

7 SOCIAL COOPERATIVES Chirograph Loan Amount: € ,00 Maximum duration60 months RateEuribor Variable no more than 0,70% Inquiry expensesZero Instalment collection exp. Zero Account opening/closing Zero Advance repayment Zero

8 L. R. 21/03 Lombardy Cooperation rules Art. 6 “Fund to support credit to cooperative enterprises” Security/Guarantee Fund Rate Abatement Fund Rotation Fund

9 “…Action aimed at cofinancing investments and financial needs TOGETHER WITH private financial intermediaries…”

10 Actions that can be subsidized Technological development Environmental development Actions aimed at improving workplace safety standards Actions aimed at adapting structures where disabled persons are to be settled in

11 Acceptable expenses real estate buying machines, equipment, furniture and instrumental goods necessary for activities stockpiling (20% of the investment program) personnel training (20% of the investment program) patents, software, counseling for research projects of new products/processes buying instrumental motor vehicles (not for goods transportation) consolidating short term financial exposure caused by extraordinary events

12 HOW MUCH CAN BE FINANCED? Minimum acceptable amount: Maximum acceptable amount: ,00 Cooperatives , ,00 Social cooperatives ,00 Maximum percentage amount that can be financed: no more than 80% on the total investment Investments are to be realized within 18 months Investments are to be realized within 18 months Regulation CE n° 69/01 “De minimis” Regulation CE n° 69/01 “De minimis”

13 HOW DOES COFINANCING TAKE PLACE? Through special financing: Rotation Fund share ( %)fixed rate 0,50% Bank share (30 – 60%)EURIBOR + 1,30% Rotation fund share ( %)fixed rate 0,10% Bank share (30 – 60%)EURIBOR + 0,90% WEIGHTED AVERAGE RATE (60 – 40) = 2,70% WEIGHTED AVERAGE RATE (60 – 40) = 1,80%

14 General Management Approving proposals Defining conditions Regional Evaluation Team IF YES Technical-financial inquiry by FINLOMBARDA FINLOMBARDA CCB Apply to: Regione Lombardia - Direzione Generale Industria, Piccole e Medie Imprese, Cooperazione e Turismo