Page 8 - Annual Report 2010

ANNUAL REPORT 2010

Philippe Maystadt

The enhancement of access to f inance for Small and Medium-sized Enterprises (SMEs) across Europe is a major pillar in the EIB Group strategy. In 2010, as the leading European fund-of - fund investor in venture and growth capital and a major provider of SME loan por t folio guarantees and credit enhancement, EIF once more increased its level and range of support. Indeed, EIF used its full spectrum of products to bring the most adapted solutions to meet the challenges of the market.

The focus of EIF has clearly been to attract and catalyse private sector investment, especially on the venture and private equity side, where EIF achieved a record level of commitments. Country-specific mandates both saw success-ful starts, such as the appointment of EIF to manage the GBP 200m UK Future Technologies Fund and the commit-ment of an additional EUR 500m in the German ERP facility.

EIF continued to have considerable impact through the European Commission’s Competitiveness and Innova-tion Framework Programme, with full usage of the guar-antee and venture capital capacity. Additionally, under JEREMIE, the mobilisation of significant levels of finance using European Structural Funds through Holding Funds

d EIF’s geographi -onstrate the close he European Com-

alised in the com-Group and the EC lia Guarantee Fa-d to support SMEs of Turkey. The fa- as one of the first e reaped from the rced cooperation ween the EIB and , aiming to bring mplementary solu-ons to the market.

“EIF is playing a critical role in stimulating smart

, sustain-able

and inclusive economic

growth

 throughout Europe.”

EIF has also worked intensively to catalyse bank lending to SMEs by playing a leading role in the recovery of the securitisation market for SME loans. It played a key role in the two largest such transactions undertaken in

Europe last year and there is clear evidence of this market reviving in 2011.

EIF has enjoyed increased support from its shareholders and mandators dur ing the year, ref lect ing their conf i -dence. This is exemplified by the signing of the EUR 200m European Progress Micro-finance Facility mandated by the European Commission and the EIB. The EIB Board of Directors has also decided to increase the Risk Capital Mandate with EUR 1bn, there-by bringing it to a revolving amount of EUR 5bn.

Looking to the future, the Board has recently reviewed the equity and guarantee strategies of EIF. A key element will be to enhance its risk-taking capacity, focussing on market segments with particular needs, in cooperation with the European Commission, Managing Authorities and other International Finance Institutions. The staf f is already working actively in support of the core objec-tives of the EU 2020 strategy and in particular the future innovation policy.

In summary, EIF will continue to extend its product offering and play a critical role in stimulating smart, sustainable and inclusive economic growth throughout Europe.

FOREWORD by the Chairman of the Board