1. Finnvera’s experience in using the counter-guarantee for micro-credit Finnvera Plc, Anneli Soppi The Role of Guarantee Funds in Microcredit, th Annual EMN Conference, Nice 9th of September 08

2. CIP guidelines Micro Credit Window
Purpose of financing: investments in tangible or intangible, assets, working capital
Terms: from 12 months up to 5 years
Maximum amount: EUR 25,000
Borrowers: micro enterprises ( EU- definition )
EIF Guarantee Rate: up to 75% of the intermediary’s commitment
Guarantee Cap: amount will be pre-set
EU Requirements: additionality, promotion, visiblity, etc

3. Finnvera and EIF´s Counter-guarantee
2 agreements 10/1999 – 6/2007
Counter-guarantees are due until 12/2016
Number of guarantees: 5000
Number of enterprises: 4500
600 million €
Micro-enterprise guarantee scheme 45 million
Guarantee portfolio: 255 million €
Compensation By EIF: 6,5 million € (net)

4. Counter guarantee of EIF
Agreement
Lender
Bank
Loan, promissory note
Micro-
Enterprise
Borrower 1. 3.
Risk
assessment of
the borrower 2.
Guarantee to 75% 5.
Inclusion notice,
Reporting
Application for compensations
Waivers
Answers to questions….
Agreement
Finnvera
Enterprise can make a contact direct with Finnvera or with a Bank
EIF’s counter
guarantee ? 4.
33,33% 1

5. Any stumbling stones ? How to prove the ADDITIONALITY Reporting
Increase on volumes, risk etc… or
Maturity of Banking sector, the economical landscape in the country
Etc…
Reporting
Follow up: Monitoring by EIF: random tests made by both EIF and Comission
Counter guarantee: free of charge
EIF can charge a penalty fee
Pay attention to your own risk management:
EIF agreement has a guarantee cap
Sharing the collateral with bank and EIF – how to maintain lean organisation and agility on a working process
Recovery - Waivers
Payment transfer
Transactions
Receivables – bookkeeping, accountancy, rendering of accounts will keep your accountancy department busy

6. Lessons learnt Keep it simple and flexible
To comply the counter-guarantee
with the national guarantee instruments, banking environment and -processes
Our target group: SMEs starting the business, expanding, internationalisation and business transfers
Rational reporting supported by your own information management
requirements for a special data processing, programming
State aid rules
De Minimis, guarantee max €
Block exemptions

7. Thank You! www.finnvera.fi Online Services online.finnvera.fi
Telephone service