1. Website: www.fin-en.eu www.fin-en.eu E-mail: info@fin-en.euinfo@fin-en.eu FIN-EN PROJECT Sharing Methodologies on Financial Engineering for Enterprises Paolo Zaggia – Finlombarda Spa OPEN DAYS 2014 Committee of the Regions, Bruxelles 8th October 2014 FIN-EN PROJECT STARTS FROM THE AWARENESS OF THE ABSOLUTE INNOVATION THAT THE FINANCIAL INSTRUMENTS, IMPLEMENTED BY EUROPEAN STRUCTURAL INVESTMENT FUNDS, ARE BRINGING IN THE PROCESS OF CAPACITY BUILDING OF THE PUBLIC ADMINISTRATION

2. Website: www.fin-en.eu www.fin-en.eu E-mail: info@fin-en.euinfo@fin-en.eu THE FIN-EN NETWORK PARTNERSHIP 13 Partners from 13 EU Countries (BE, DK, FR, DE, GR, HU, IT, LT, LI, PT, SI, ES, UK), and 3 Observer Institutions (DE, BG, MT), managing FEIs for SME in 2007-2013 (5 Managing Authorities, 7 Fund Managers, 1 European Association, for a total budget of about 3,5 Billion Euros. OBJECTIVE To enhance co-operation among EU regions on the implementation of Financial Instruments (FIs) under EU Structural Funds, by sharing concrete solutions on common issues related to the overall life cycle of FIs (programming, implementation and monitoring and evaluation). TOTAL BUDGET 1,9 Million Euros. TIMING 36 months (Kick off: March 2012) OUTPUT 1 Data Base (with quantitative and qualitative information, complementary with monitoring system of EC SFC2007), 3 Reports with several good practices (15) for each phase of the implementation process and 3 Study visit, 11 Implementation Plans, 1 Guidelines for the implementation of FIs.

3. Website: www.fin-en.eu www.fin-en.eu E-mail: info@fin-en.euinfo@fin-en.eu 45 FI EXPERIENCES IN SUPPORT OF SMES IN 2007-2013 9 Convergence Regions/MS 5 Competitive Regions/MS 13 Equity10 Loans6 Guarantees16 Combined 4 ESF co-financing ERDF co-financing Training services, consultancy Without Holding Fund 6 7 13 7 3 2 3 High use of Combined FI Significant private co-funding FIs covering the entire lifecycle of SME

4. Website: www.fin-en.eu www.fin-en.eu E-mail: info@fin-en.euinfo@fin-en.eu  1 Guidelines for the implementation of FI Technical Advisory Committee METHODOLOGY 1. PROGRAMMING FLEXIBILITY: JEREMIE Fondo Multiinstrumento (Andalucia); Midtjysk Iværksætterfond (Central Denmark). LEVERAGE New Hungary Venture Capital Programmes (Hungary); North West Fund (West England) …. 3. MONITORING CHECKS Credit line combined with guarantee (Portugal) IT SYSTEM North West Fund (West England); FRIM FESR (Lombardy Region) ….. 2. IMPLEMENTING SELECTION PROCESSING FRIM FESR for Financial Intermediaries (Lombardy region); JEREMIE for Fund Manager (Auvergne Region);....  11 Implementation Plan  3 Study visitAuvergnePortugalWest England  1 DB  3 TWG

5. Website: www.fin-en.eu www.fin-en.eu E-mail: info@fin-en.euinfo@fin-en.eu Well-established policy option Most commonly used form of finance by SMEs Straightforward with predictable returns Can include microcredit aimed at those usually excluded from access X Potential crowding–out of private sector Simple to design and administer Require less capital outlay Useful where there is credit rationing Cost-effective way to create employment X Claims unpredictable and additionality difficult to determine Highly specialised Investor gains some management control For innovative forms with high growth potential Potential to generate high returns X Complex, risky and returns unpredictable Loans Guarantees Equity Including grants and ‘soft’ support can offer flexible & tailored solutions Combined FI HIGHLIGHTS

6. Website: www.fin-en.eu www.fin-en.eu E-mail: info@fin-en.euinfo@fin-en.eu A “BUSINESS” IN “MARKET FAILURE AREAS” BETWEEN TWO WORLDS WITH DIFFERENT RULES  EUROPEAN FUNDS State Aid / Stability Pact Rules  FINANCIAL MARKET Basilea III Rules CLEAR RULES from the beginning of programming period FLEXIBILITY OF GOVERNANCE to facilitate involvement of private in «horizontal subsidiarity» CONTINUATIVE SPECIFIC ASSISTANCE to the Managing Authorities during the entire cycle of the implementing process of Financial Instruments NEEDS FINANCIAL INSTRUMENTS with EUROPEAN FUNDS PRIVATE RESOURCES EUROPEAN RESOURCES 2014-2020 amount 1.000 Billion Euros in 7 years (of which a small % to FI in PA Planning) FIs MARKET FAILURE AREA

7. Website: www.fin-en.eu www.fin-en.eu E-mail: info@fin-en.euinfo@fin-en.eu

8. Website: www.fin-en.eu www.fin-en.eu E-mail: info@fin-en.euinfo@fin-en.eu Thanks for your attention! paolo.zaggia@finlombarda.it