Presentation on theme: "European Investment Bank1 CARIFORUM Meeting of Business Support Organisations Kingston, Jamaica, March 28 th and 29 th Funding Opportunities for the Private."— Presentation transcript:
European Investment Bank1 CARIFORUM Meeting of Business Support Organisations Kingston, Jamaica, March 28 th and 29 th Funding Opportunities for the Private Sector EUROPEAN INVESTMENT BANK
European Investment Bank2 Contents: 1. The European Investment Bank (EIB) 2. The EIB in the Caribbean 3. The EIB and SMEs access to finance
European Investment Bank3 1. The EIB, the EU Bank European Unions long-term financing institution set up in 1958 by the Treaty of Rome. Shareholders: 27 EU Member States Lending in 2010: European Union: EUR 63 bn Outside the EU: EUR 8.8 bn Total lending: EUR 71.8 bn Borrowings : EUR 67 bn Broad range of financial instruments: from senior loans to equity. Also TA facilities.
European Investment Bank4 InfrastructureFinancial sector STRATEGIC FOCUS EnergyWaterTransportsSMEs MicroEs - Financial Intermediaries -- public & private companies -
European Investment Bank6 2. The EIB in the Caribbean Cumulative signatures as at 31/12/2010 represented EUR million under the successive Lomé and Cotonou conventions. Total signatures under Cotonou ( ) EUR 361 million or an average of EUR 52 million per annum. Financial sector (GLs + Equity Funds) 61%, Transport 18%, Energy 14%, Tourism 7%.
European Investment Bank7 EIB and the Caribbean Financial Sector Strong links with regional (CDB, IADB, DFL, CSFC) and national development banks (AIDBANK, DBSKN). But also fructuous cooperation with indigenious banks and financial institutions (Banco BHD, Banco Leon, Banco Popular, Sofihdes, NCBJ, PanCaribbean and BOSL). EIB was instrumental in the development of Microfinance institutions in the Dominican Republic (Ademi, Fondesa and Adopem) with equity, loans and T.A. Participation in various equity funds with a national or regional focus (AIC Fund).
European Investment Bank8 Access to attractive long and medium term funding and regulatory capital. Interest subsidies when justified (environmental & social investments). Technical assistance to support capacity building. Promotion of best practises. Value Added
European Investment Bank9 L ong term lines of credit EIB Commercial Bank / Microfinance institution A BCF Global Loan Sub-loans Micro, Small and Medium sized Enterprises: A to…F Finance for growth and Finance for all.
European Investment Bank10 4.The EIB and SMEs access to finance Obstacles to SME access to financing Insufficient collateral / Capital base Volatile pattern of growth and earnings High risk profile / mortality rate Gaps in the legal and regulatory framework Incomplete range of services by Financial Institutions Weaknesses in information provision by SMEs
European Investment Bank11 The EIB and SMEs access to finance Apart from providing Financial Intermediaries with funding for on lending (or investment) to SMEs the EIB can also mobilize TA grant funding. TA operations aim to (i) enhance project quality and success rate (ii) increase efficiency and (iii) complement other financial products. In the Financial Sector, TA can be targeted at Financial Intermediaries capacity building but also Final Beneficiaries (MSMEs).
European Investment Bank12 TA and SMEs access to finance TA can finance :. the establishment of dedicated business units to serve the SME segment.. the extension of operations into new geographic areas (ex rural districts).. the development of new products both on the lending and deposit side for the SME clientele (ex. leasing).. financing the delivery of advisory services for applicants/customers.
European Investment Bank13 Advisory Services for SME applicants Support to business plan preparation. Advise and counselling to investors during investment and operation phase. Development and application of management system packages (accounting, IT, HR, quality, strategic business planning). Referral specialist support (technology, export market, research).
European Investment Bank14 Concluding remarks Large and well established companies have access to Commercial Banks financing including for long maturities. Commercial banks are more reluctant to finance Infrastructure and SMEs. Thus, the catalytic role of Multilateral Development Banks. When dealing with SMEs, finance is sometimes not enough. TA can improve quality of the deal flow and reduce mortality rates. EIB has established on the 24/3/2011 with Center for Development of Enterprises, a EUR 1 million SME Access to Finance Facility in the Caribbean (SAFFC) for pre and post investment support and capacity building.
European Investment Bank15 Concluding remarks (2) EIB is ready to look at a similar partnership with CADE targeting export oriented SMEs with finance and T.A. How could BSOs be associated to these different initiatives for the benefit of their members ?
European Investment Bank16 Thank you for your attention Yves Ferreira Head of the Regional Representation in the Caribbean European Investment Bank 1, Boulevard Général de Gaulle, F – Fort-de-France, Martinique Tel: (+596) EIB Website: