1. The European Progress Microfinance Facility
Raymond Maes
European Commission
Employment, Social Affairs & Equal Opportunities
ESF-TWG 29/09/2010

2. Why this initiative?
Part of response to crisis with rising unemployment and social exclusion.
Commission communication June 2009:
‘A shared commitment for employment’
‘ offer a new chance to the unemployed and open the road to entrepreneurship for some of Europe’s most disadvantaged groups’

3. How? Redeploy and leverage EU resources to:
Extend range of targeted financial support to new entrepreneurs in the current context of a reduced credit supply.
Gear existing instruments to better:
Assist (potential) micro-entrepreneurs with mentoring, training and coaching.

4. Creating jobs and fighting exclusion
What do we aim at?
Creating jobs and fighting exclusion
by:
Increasing access to, and availability of, microfinance for:
vulnerable groups (unemployed, disadvantaged people, youth...)
micro-enterprises, especially those in the social economy

5. How much? Union’s contribution € 100 M (2010-2013)
EIB contribution: up to € 100 M
Expected total ‘leverage’: € 500 M

6. What is the product? Micro-credit to Final Beneficiaries enabled by:
Guarantees (implemented through EIF)
on microcredit portfolios (€ 25 million from EU resources)
Debt instruments, equity
by means of a Specialised Investment Fund (SIF)
(up to + € 225 million = € 75m from EU + up to € 100m from the EIB + up to € 50m from other investors)

7. to final beneficiaries
Investment In SIF
Agreement between
SIF and MFI
Micro-credit
to final beneficiaries
FB=Final Beneficiaries

8. Who are the providers?
Public and private financial intermediaries (MFI);
on national, regional and local levels in the EU;
providing microcredits to persons/micro-enterprises in the EU; or
guarantees on microcredits in the EU

9. But besides funding… integrated business support is crucial
Delivered in the form of integrated packages of financial, business and social expertise to starters
Offering advice, training, mentoring and support for preparing the start into self-employment, and for the first years in business
Broad range of delivery / support systems:
European Social Fund (ESF) - more than € 2.75 billion for entrepreneurship
Public employment services - first contact point (local offices and advisors)
Enterprise Boards - Network of 550 contact points
Non-governmental organisations (NGOs) - reaching out to the most excluded

10. The individual’s perspective
Public employment service or NGO
Microfinance provider
(bank or NGO)
4. Training, coaching (European Social Fund)
Micro-
enterprise 1 2 3
Individual
Micro entrepreneur
loan
Information
Support

11. Next steps? Spring 2011: first annual report
9-10 November 2010: European Microfinance conference Official launch Microfinance Facility
Spring 2011: first annual report
In parallel: development of assistance to business support structures
Further synergies between EU instruments supporting microfinance

12. www.ec.europa.eu/epmf http://www.eif.europa.eu/
Thank you!
General information on:
Information for intermediaries:
(under: Microfinance - European Progress Microfinance Facility)