1. The European Progress Microfinance Facility Raymond Maes European Commission Employment, Social Affairs & Equal Opportunities Open days 6 October 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 Europes 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. 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? Unions contribution 100 M (2010-2013) EIB contribution: up to 100 M Expected total leverage: 500 M

6. What are the products? (jointly managed with EIF/EIB) Guarantees on microcredit portfolios ( 25 million from EU resources) Specialised Investment Fund (SIF) providing: – debt instruments – equity to be on-lent in the form of microcredits (up to + 225 million = 74m from EU + up to 100m from the EIB + up to 51m from other investors)

7. 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

8. MFI y MFI z FB x FB y FB z MFI x Fund Manager (EIF) FB z Agreement between special vehicle and MFI Micro-credit to final beneficiaries FB=Final Beneficiaries European Commission Share holding in special vehicle

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 individuals perspective Public employment service or NGO Microfinance provider (bank or NGO) 4. Training, coaching (European Social Fund) Micro- enterpris e 1 2 3 Individual Micro entrepreneur loan Information Support

11. Next steps? 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

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