JEREMIE Benefits

Flexibility: Contributions from the Operational Programmes to the JEREMIE Holding Fund will be eligible for interim up-front payment by the European Regional Development Fund giving Managing Authorities more flexibility in allocating these resources; Structural Fund contributions to the Holding Funds must be invested in SMEs by 2015;

Portfolio Approach: The Holding Fund will be able to re-allocate the resources to products in a flexible way, depending on the actual demand and the economic cycle over time. The umbrella fund approach will allow a diversification of risks and expected returns;

Recycling of funds: The Holding Fund is of a revolving nature, receiving repayments from the financial intermediaries for further investments in the Micro, Small and Medium-sized Enterprises (SME) sector. This makes SME support via EU Structural Funds sustainable compared to using the pure grant approach;

Leverage: A significant advantage of JEREMIE is its ability to engage the financial sector, either at the Holding Fund level, with additional capital from financial institutions, and/or at the level of the financial instruments through public/private co-financing, e.g. in cooperation with the European Investment Bank (EIB);

Expertise: EIF’s expertise as a Holding Fund manager can be of particular added value in the less-developed regions/Member States, where there is a need for capacity-building initiatives and transfer of knowhow between local institutions, the market and the EIF;

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