JASMINE managed by

Mentoring(Technical Assistance)

Microfinance Institutions (MFIs)

Funding(Loans, Guarantees, Equity/quasi equity, Grants, etc...)

EIB, EP, Eurofi, other Banks,Contributors, etc..

JEREMIE, ERDF, ESF

DG REGIO T.A.

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Funding at a glanceMethod : Co-financingTarget : primarily non-banking MFIs close to sustainability (e.g. : new branches of well-established MFIs, young and more mature MFIs)Initial phase : 20 30 MFIs to be funded over 3 yearsArea : 27 Member States3-year pilot phase funding : +/- EUR 50 m Financial instruments for MFIs : mainly short-term to medium-term loans, guarantees, equity / quasi-equity, technical assistance, non-repayable assistance, Investors : (EU, EIB, EP, private and public banks, regions, etc..)

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Practical set-up of JASMINE, (implementation in Q3 2009)Start of a 3-year pilot phase to identify best practices in the field of micro-credit with selected model non-bank micro-credit providers to prepare scaling up of operationsFinding ways to improve the micro-credit environment in the European Union Promotion of micro-credit through JEREMIE Holding Funds

Next steps

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Conclusions

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The Curve of ChangeConfusion / Denial1 Anger / Blame /2 Questions Integration / Moving on 7 Depression 4 Acceptance 6 Bargaining3PerformanceTimePeriod of lossIncreasing stressDecreasing stressPositive growth Testing 5

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Developing the provision of micro-credit in the EU is a challenging undertaking which understates a process of changeIt is however not a single mans job. It involves a large number of stakeholdersIs not solely a financial issue as well. It also requires appropriate and qualified intermediaries

Conclusions (1/3)

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In this respect, MFIs seem better positioned than banks to help non-bankable entrepreneurs start their businessJASMINE will seek to develop the potential of micro-credit providers and to make adequate funding available to themJASMINE will seek to foster as much synergies as possible between the actors on the micro-credit scene

Conclusions (2/3)

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Partnership between banks and MFIs needs to be encouraged, as it can be a win-win undertaking for all. The Lisbon Agenda, the micro-credit initiative of the Commission, the Small Business Act, the Becsey-Report and the financial crisis offer a unique framework to improve the micro-credit environment in Europe

Conclusions (3/3)

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A few stakeholdersMember States (improve the micro-credit environment),Regions (local development, fight against exclusion),The Commission (Cohesion Policy, JEREMIE, JASMINE, Guarantee window of the Competitiveness and Innovation Programme, SBA, ),The European Parliament (political action, financial support),The European Investment Bank Group (financial expertise, fund raising and leverage effect),Banks, Savings banks (expertise, social responsibility, funding, best practices)Micro-finance Networks (on the ground knowledge, dissemination of information, best practices),Private and public investors, retail banks (funding and expertise),Rating Agencies (Evaluation, commercial rating)Donors,

You.

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Thank you for your attention

For further Information

Website:http://ec.europa.eu/regional_policy/funds/2007/jjj/micro_en.htmEmail: REGIO-FINANCIAL-ENGINEERING@ec.europa.eu

DG REGIO Unit D3 Financial Engineering

quality label : to help them attract borrowers in confidence and to raise funds on the private capital market.

The Commission and the EIB are setting up an instrumen to promoteMicro-credit is a way to promote Jobs and Growth in the EU Adapting institutional and legislative environment at Member State level is important