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Conclusions of the March 2005 European Council

Conclusions of the March 2005 European Council. “ The European Investment Bank will have to extend its Structured Finance Facility to R&D projects and, together with the Commission, explore new ways of using Community funds as levers for EIB loans .”.

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Conclusions of the March 2005 European Council

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  1. Conclusions of the March 2005 European Council “The European Investment Bank will have to extend its Structured Finance Facility to R&D projects and, together with the Commission, explore new ways of using Community funds as levers for EIB loans.”

  2. Commission proposal for FP7 April 6, 2005 Building the ERA of knowledge for growth: “The 7th Framework Programme will also comprise a “Risk-Sharing Finance Facility” aimed at fostering private investment in research by improving access to European Investment Bank (EIB) loans for large European research actions. This mechanism will enable broader EIB lending to RTD actions (Joint technology initiatives, large collaborative projects and new research infrastructures).”

  3. Risk-sharing finance facility:Objectives and added value An innovative financing mechanism to: • Improve access to EIB loan finance and foster increased private investment in research. • Risk-sharing with EIB to allow: - Larger volume of EIB lending - Financing of riskier projects by EIB • Generate a leverage effect so that the volume of extra lending by EIB is a multiple [3-4] of the Community funds allocated to the facility. • Rely on an existing EIB facility, and therefore benefit from EIB experience and management.

  4. Risk-sharing finance facility:Additionality in terms of volume and level of risk

  5. Risk-sharing finance facility:Beneficiaries • Major European RTD actions (joint technology initiatives, large collaborative projects – including Eureka projects – , new research infrastructures), which need to mobilise a large financial critical mass. • All types of organisations participating in multipartner consortia are potential beneficiaries, e.g. large and small enterprises, public research organisations. • Borrowing entity: individual partner(s) or legal entities gathering them.

  6. Risk-sharing finance facility:Budget and modalities • Budget to be derived from contributions of two FP7 budget lines: « Cooperation » and « Infrastructure ». Maximum contributions to be decided in the specific programmes. • FP7 funding to be used by the EIB, in addition to its own funds, as a reserve to cover the risk associated to its lending operations. • Modalities for reallocation of generated incomes and any leftovers to be established in the specific programmes.

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