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Annual Report 2011
26
under Progress Microfinance. In the future, it is expected
that JASMINE TA will deepen coordination with Progress
Microfinance to enhance the synergies between the two
facilities.
12
micro-lenders
in
9
countries
under Progress
Microfinance in
2011
Progress Microfinance, comprising to date EUR 203m of
funding originating from the EC and the EIB, allows EIF,
which manages the initiative on their behalf, to make a
substantial contribution towards filling a funding gap in the
EU microfinance market, as well as providing risk cover-
age through the guarantee instrument, while proving its
management expertise in microfinance initiatives.
Progress Microfinance is implemented by EIF through two
separate mandates. First, the provision of micro-credit port-
folio guarantees to MFIs under a direct mandate from the
EC. Second, further financial instruments such as debt,
equity, and risk sharing are deployed to MFIs through a
Luxembourg “fonds commun de placement“ (FCP) struc-
ture managed by EIF.
Given its solid commitment to supporting the emerging
microfinance sector in Europe, EIF has already begun ex-
ploring ways of further enhancing outreach under Progress
Microfinance and extending the initiative beyond 2016.
CIP SME Guarantee Facility (SMEG) for micro-
finance
With CIP SMEG, and through EIF, the EU also provides
capped guarantees on portfolios of micro-credit financ-
ing granted by financial institutions (FI) to very small
enterprises with a commercial focus. The risk-sharing ar-
rangements established between EIF and each FI aim to
stimulate micro- lending and enhance access to finance
for micro-entrepreneurs in Europe.
SMEG therefore complements Progress Microfinance,
which is deployed in EU-27 countries only and in support
of more socially-focussed micro-loan portfolios with rela-
tively small cap amounts. EIF’s active approach to manag-
ing both programmes in a complementary manner is un-
derpinned by specific allocation prioritisation guidelines.
Joint Action to Support Microfinance Institutions
in Europe (JASMINE)
JASMINE is a joint initiative of the EC and the EIB Group
(EIB and EIF) launched in September 2008 to provide
technical assistance to non-bank micro-credit provid-
ers in the EU with a view to increasing the provision of
micro-credit to micro-entrepreneurs. The objective of the
RCM
EPPA
Progress Microfinance
Yearly microfinance commitments – in EUR m
2009
2010
2011
70
60
50
40
30
20
10
0
1.8
67.1
8.2
Microfinance resources and mandates
European Progress Microf inance Faci l i t y
(Progress Microfinance)
Progress Microfinance aims to increase access to finance for
micro-entrepreneurs including the self-employed and has a
particular focus on, but is not restricted to, groups with limited
access to the traditional banking
system. Its full launch in November
2010 marked a major develop-
ment for EIF’s microfinance activities
which, in addition to capacity, also
gained the structural framework
needed to absorb its smaller micro-
finance pilot predecessors including
EPPA and RCM Micro.