1 EIF Riga, 21 January 2010 Presentation to the Monitoring Committee

2 Overview JEREMIE Holding Fund in Latvia Current Status Next Steps and Timetable Key points Other EIF activities in Latvia

3 JEREMIE Holding Fund – Capital Allocations Holding Fund (EUR 91.5m) Imprimatur EUR 14.7m Seed & Start up Fund Funded Risk Sharing Product SEB EUR 30m Baltcap EUR 20m Risk Capital Fund Debt-related instrument Equity-related instruments SME Community Swedbank EUR 22m SMEs Financially Engineered Instrument Selected Financial Intermediaries End Beneficiaries

Risk Capital Fund JHF EUR 20 m allocated Private Investment EUR 10 m Risk Capital Fund (Limited partnership) SME 4 - Upside Incentivisation - No Downside protection - Professional Management Focus on high growth sectors

5 Update on transactions – Risk Capital Fund EIF Board approval for Baltcap Management Latvia in July 2009 First closing and signature for Baltcap planned in January Successful fundraising for private investors EIF commitment up to 20m EUR, target fund size 30m EUR Background 17 applications received 7 applicants passed to 2nd screening phase Interviews completed May 7th and May 8th Due Diligence on BaltCap completed 28/29th May, approved by EIF Board on July 13th

Seed & Start-up Fund JHF EUR 3m allocated Private Investment EUR 5.7 m Risk Capital Fund (Limited partnership) SME 6 - Upside Incentivisation - No Downside protection - Single Professional Management University Spin out focus projects EUR 11.7m allocated Seed Fund (Limited Partnership) Innovative Technologies focus SMEs

7 Update on transactions – Seed & Start up Fund EIF Board approval for Imprimatur Capital Baltics in end-September 2009 First closing and signature expected after the necessary financing from private investors will be raised EIF commitment up to 14.7m EUR, target fund size 20.4m EUR (3m Seed and 17.4m Start-up window) Legal negotiations near completion Background 11 applications received 3 applicants passed to 2nd screening phase Interviews completed May 7th and May 8th Due Diligence completed in July

Funded Risk Sharing Product (FRSP) JHF EUR 52 m allocated JEREMIE Resources EUR 52 m 1. Deposit to Bank(s) Combined with Bank’s own resources EUR = 104 m SME 2. Loans to SMEs Deposit acts as 50% co-financing 8 70% focus on Manufacturing sector

9 Funded Risk Sharing Funded Risk Sharing Product Product created by EIF over 2009 Nothing more than a flipchart in January 2009 This Product required:- Full exploration by EIF experts and discussions with banks EIF Board approval of product Call process and extensive explanation/marketing Liaison with DG Regio and DG Comp Huge EIF resource commitment, especially lawyers Specially devised standardised contract EIF Board approval of transactions This will support up to EUR 104m of new SME lending in Latvia within 2 year period

10 FRSP – Current Status SEB approved by EIF Board on 20 October Legal negotiations under way Swedbank approved by EIF Board on 14 December Legal negotiations under way Background MoE confirmation on state aid status 22 April Call launched 6 May 2009, deadline 3 June 3 banks applied, significant volume interest (oversubscribed) 2 applicants passed to screening phase Due diligence and counter-party risk analysis completed

11 Overview JEREMIE Holding Fund in Latvia Current Status Next Steps and Timetable Key points Other EIF activities in Latvia

12 Next Steps & Timetable TYPESELECTION CONTRACT NEGOTIATION FUND RAISINGSIGNATURESMEs FRSPSEB - completed OngoingGiven1-3 months Q1 After signature FRSPSwedbank – completed OngoingGiven1-3 months Q1 After signature Risk Capital Fund Baltcap – completed Near Completion Ongoingend-Jan / beg. Feb Pipeline preparation started Seed & Start up Fund Imprimatur – completed Near Completion Ongoing3-6 months (depends on fundraising) Pipeline preparation started

13 Key Points Well-structured HF Portfolio Financial Intermediaries selected All four transactions going live soon Key principle of self-sustainability maintained for long term benefit of Latvia

14 Other EIF activities in Latvia EIF Transactions in 2009 (approx EUR 30m) CIP Guarantee transaction with the Land and Mortgage Bank CIP equity transaction with MTVP Fund Managers

EIF at a Glance Dual Objective of Meeting EU Policy Goals & Generating a Satisfactory Return on Equity EU specialised institution for SMEs, risk financing Venture Capital and Mezzanine (fund of funds) Structuring and Guaranteeing portfolios of SME and microfinance loans/leases Authorised Capital € 3bn EIB: 61% EU: 29 % Fin. institutions: 9 % To be issued: 1% Geographic Focus / Intermediaries EU 27, EFTA, Candidate Countries Distributing through Banks and Funds AAA rated Staffing, Culture and Values Leading-edge modern institution Adapting to changing market conditions Attracting talented staff High standards of compliance and integrity 15

16 EIF currently manages … Portfolio of over EUR 16 billion in financial engineering transactions Via close to 500 different financial institutions Over 300 Equity Transactions via Fund Management Companies Almost 200 Debt/Guarantee transactions via banks 10 Member State JEREMIE Holding funds 5 other European Fund of Funds Mandates Close to 200 Professional staff via Head Office and local office network