Comprehensive Reporting on Financial Instruments to the Commission

1. Reporting on financial instruments to the Commission under the Annual and Final implementation reports Directorate General for Regional and Urban Policy

2. Relevant CPR provisions_______________________________ The reporting model is based on the most recent compromise text on Financial Instruments of 2 July 2013 and in line with the annual and final implementation reports templates agreed at the Experts meeting of 28 June. Empowerment: Article 40(3) of the CPR- Implementing act laying down uniform conditions by establishing models to be used when reporting on financial instrument to the Commission. Reporting requirements apply to financial instruments referred to in Article 33(1)(a) and (b). Other relevant legal provisions of the CPR: Article 40(2) specific detailed information for reporting on financial instruments and Article 101 - Implementation Reports for the Investment for growth and jobs goal

3. Main objectives and scope of the implementing act______________________________________________________________ • Aims to provide complete and coherent reporting information on financial instruments to the Commission, presented in a consistent way to allow comparison and aggregation of the information. • Simplifies the reporting process: reporting model included as an annex to the annual and final implementation reports combines financial instruments referred to in Article 33(1)(a) and (b). • Allows the Commission to fulfil reporting obligations towards Member States (Article 40(4)), budgetary and control authorities and to Citizens, regarding delivery of ESI Funds budgetary resources through financial instruments. • The proposed model follows the requirements of Article 40(2) and is in line with similar reporting obligations imposed on the Commission by Article 140(8) of the Financial Regulation. • The model may be further adapted to EAFRD and EMFF, according to the specific regulations of those Funds.

4. Main elements of the reporting model (1) _________________________________________________________ • The reporting model follows the logic of paragraphs (a) to (k) of Article 40(2) and is divided into 9 parts numbered from I to IX. • The reporting model should be completed separately for each financial instrument, including fund of funds where applicable. • If the financial instrument receives contributions from more than one ESI Fund and/or programme, the managing authority will report on the data relative to the programme contribution under its responsibility and priority axes or measures previosuly predefined of the reporting model(section 1). • The reporting model contains also some specifications of the format of data required (text, number or date) and the input method (selection of one or several predefined inputs or filling in with input).

5. Main elements of the reporting model (2) - changes in the reporting model compared to the version presented at the Experts' meeting on 8 April_______________________________________________________________ • Content Following the Trilogue of 2nd of July, two new paragraphs were added to Article 40(2)of CPR : (f) on the performance of the financial instrument and (h) on the value of equity investments with respect to previous years. The requirements of those paragraph are transposed in parts VI (f) and VII (h). Other new elements concern: • the reference to the thematic objectives listed in article 9 of CPR and to the ESI Fund(s) co-financing priority axis/measure added in Part I; • specification of total amount of support paid to final recipients in microloans (section 17.4.4) and committed in guarantee contracts for microloans (section 18.4.4). • Structure The number of main parts was reduced from 10 to 9, in order to focus on the information required by the CPR. The sections referring to the identification of the FI (name, place of business and implementation mode) previously included in Part I are now included in part II: description of the FI. Numbering of the whole model was adapted to the Article 40(2) and simplified.

6. Main elements of the reporting model (3)_______________________________________________________ Part I - Article 40(2)(a) of CPR Identification of the programme and priority or measure from which support from the ESI Funds is provided This part of the reporting model identifies the programmes, priority axes and or/and measures from which support from the ESI Funds is provided to the financial instrument and the thematic objective(s) supported by the financial instrument. What is new: section on priority axis/measureand reference to the ESI Fund(s) (section 1). section on other ESI Funds programmes contributing to the FI (section 2). reference to the thematic objectives listed in article 9 of CPR (section 3).

7. Main elements of the reporting model (4)_______________________________________________________ Part II - Article 40(2)(b) of CPR Description of the financial instrument and implementation arrangements This part of the model describes the financial instrument, including a type of the FI ( EU level v MS/region level, off-the-shelf v tailor-made) implementing mode (financial instrument implemented with or without a fund of funds) and geographical coverage (national, trans- national or cross-border level). This part will also specify the form of financial support offered by the financial instrument, including information on other support combined within the financial instrument pursuant to Article 32(5) of CPR like grants, interest rate subsidy, and guarantee fee subsidy. What is new: description of the financial instrument, namely its name, official address/place of business and implementation mode was removed from part I to part II. legal status of the financial instrument pursuant to Article 33(7) of CPR was added in Part II (section 11).

8. Main elements of the reporting model (5)__________________________________________________________ Part III - Article 40(2)(c) of CPR Identification of the body implementing financial instruments (and funds of funds where applicable), as referred to under Articles 33(1)(a), 33(4)(a), (b) and (c), and the financial intermediaries referred to under Article 33(6) Part III of the reporting model identifies the bodies implementing the financial instrument (including funds of funds where applicable), as referred to under Articles 33(1)(a), 33(4)(a), (b) and (c), and the financial intermediaries referred to under Article 33(6). The required information covers the procedure of selecting and date of signature of the funding agreement with an implementing body.

9. Main elements of the reporting model (6)_____________________________________________________________ Part IV - Article 40(2)(d) of CPR Total amount of programme contributions, by priority or measure, paid to the financial instrument This part refers to the total amount of ESI Funds programme contributions (by priority axis or measure) actually paid to the financial instrument (paragraph (d) of Article 40(2)) in relation to the contributions committed in the signed funding agreement. If the financial instrument receives contributions from more than one ESI Fund and/or programme, the managing authority will report on the data relative to the programme contribution under its responsibility and priority axes or measures predefined in section 1 of the reporting model.

10. Main elements of the reporting model (7)_____________________________________________________________ Part V - Article 40(2)(e) of CPR Total amount of support paid to final recipients, or to the benefit of final recipients, or committed in guarantee contracts, by the financial instrument for investments in final recipients, as well as management costs incurred or management fees paid, by ESI Funds programme and priority or measure. Part V of the reporting model refers to the total amount of support paid to final recipients, (or to the benefit of final recipients or committed in guarantee contracts) by the financial instrument, for investments in final recipients. The information on management costs incurred or/and management fees paidshould also be included. What is new: • specification of total amount of support paid to final recipients in microloans (section 17.4.4) and committed in guarantee contracts for microloans (section 18.4.4). • management costs incurred or/and management fees paid by the financial instrument in relations to the investments made in final recipients ( sections 17.7, 18.8, 19.7 and 20.7).

11. Main elements of the reporting model (8)_____________________________________________________________ Part VI - Article 40(2)(f) of CPR The performance of the financial instrument, including progress in its set-up and in selection of bodies implementing the financial instrument (including the body implementing a fund of funds). The part VI refers to the information demonstrating the performance of the financial instrument, including: • progress in its set-up and in selection of bodies implementing the financial instrument (including the body implementing a fund of funds); • a state of play as regards completion of the ex-ante assessment(s); • selection of financial intermediaries and number of funding agreements already signed (Article 44(2) of CPR). Information on disbursed loans defaulted, guarantees provided and called due to the loan default will also have to be provided under this part of the model. What is new: reference to the new paragraph (f) of Article 40(2).

12. Main elements of the reporting model (9)_____________________________________________________________ Part VII- Article 40(2)(g) and (h) of CPR Interest and other gains generated by support from the ESI Funds to the financial instrument, programme resources paid back to the financial instrument from investments as referred to in Article 37 and 38, and the value of equity investments with respect to previous years. Part VII of the model contains information on interest and other gains generated by support from the ESI Funds to the financial instrument, programme resources paid back to the financial instrument from investments (as referred to in Article 37 and 38) and the value of equity investments with respect to previous years What is new: section 32 of part VII includes requirements of the new paragraph (h) of Article 40(2) of CPR => the value of equity investments with respect to previous years amounts attributable to the support from the ESI funds were distinguished from amounts repaid to the financial instrument.

13. Main elements of the reporting model (10)_____________________________________________________________ Part VIII- Article 40(2)(j) of CPR Progress in achieving the expected leverage effect of investments made by the financial instrument and value of investments and participations Part VIII aims to present progress in achieving the expected leverage effect of investments made by the financial instrument and value of investments and participations, as required in Article 40(2)(j) of CPR. Part IX- Article 40(2)(k) of CPR Contribution of the financial instrument to the achievement of the indicators of the priority or measure concerned Part IX should present contribution of the financial instrument to the achievement of the indicators of the priority or measure concerned.

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