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EUROPEAN INVESTMENT BANK

Learn about the European Investment Bank's strategic focus, involvement in the Caribbean, SME access to finance, and funding opportunities for private sector enterprises. Discover how the EIB supports business growth and development through long-term credit lines, advisory services, and technical assistance. Explore key points on financing obstacles and solutions for SMEs. Get insights into partnerships and initiatives benefiting Caribbean businesses.

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EUROPEAN INVESTMENT BANK

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  1. EUROPEAN INVESTMENT BANK CARIFORUM Meeting of Business Support Organisations Kingston, Jamaica, March 28th and 29thFunding Opportunities for the Private Sector European Investment Bank

  2. Contents:1. The European Investment Bank (EIB) 2. The EIB in the Caribbean 3. The EIB and SMEs access to finance European Investment Bank

  3. 1. The EIB, the EU Bank • European Union’s long-term financing institution set up in 1958 by the Treaty of Rome. • Shareholders: 27 EU Member States • Lending in 2010: • European Union: EUR 63 bn • Outside the EU: EUR 8.8 bn • Total lending: EUR 71.8 bn • Borrowings : EUR 67 bn • Broad range of financial instruments: from senior loans to equity. Also TA facilities. European Investment Bank

  4. STRATEGIC FOCUS - public & private companies - - Financial Intermediaries - European Investment Bank

  5. Infrastructure and SMEs European Investment Bank

  6. 2. The EIB in the Caribbean • Cumulative signatures as at 31/12/2010 represented EUR 1.338 million under the successive Lomé and Cotonou conventions. • Total signatures under Cotonou (2004-2010) EUR 361 million or an average of EUR 52 million per annum. • Financial sector (GLs + Equity Funds) 61%, Transport 18%, Energy 14%, Tourism 7%. European Investment Bank

  7. EIB and the Caribbean Financial Sector • Strong links with regional (CDB, IADB, DFL, CSFC) and national development banks (AIDBANK, DBSKN). • But also fructuous cooperation with indigenious banks and financial institutions (Banco BHD, Banco Leon, Banco Popular, Sofihdes, NCBJ, PanCaribbean and BOSL). • EIB was instrumental in the development of Microfinance institutions in the Dominican Republic (Ademi, Fondesa and Adopem) with equity, loans and T.A. • Participation in various equity funds with a national or regional focus (AIC Fund). European Investment Bank

  8. Value Added • Access to attractive long and medium term funding and regulatory capital. • Interest subsidies when justified (environmental & social • investments). • Technical assistance to support capacity building. • Promotion of best practises. European Investment Bank

  9. Long term lines of credit EIB Global Loan Commercial Bank / Microfinance institution Sub-loans A B C F Micro, Small and Medium sized Enterprises: A to…F Finance for growth and Finance for all. European Investment Bank

  10. 4.The EIB and SMEs access to finance Obstacles to SME access to financing • Insufficient collateral / Capital base • Volatile pattern of growth and earnings • High risk profile / mortality rate • Gaps in the legal and regulatory framework • Incomplete range of services by Financial Institutions • Weaknesses in information provision by SMEs European Investment Bank

  11. The EIB and SMEs access to finance ►Apart from providing Financial Intermediaries with funding for on lending (or investment) to SMEs the EIB can also mobilize TA grant funding. ► TA operations aim to (i) enhance project quality and success rate (ii) increase efficiency and (iii) complement other financial products. ► In the Financial Sector, TA can be targeted at Financial Intermediaries capacity building but also Final Beneficiaries (MSMEs). European Investment Bank

  12. TA and SMEs access to finance TA can finance : . the establishment of dedicated business units to serve the SME segment. . the extension of operations into new geographic areas (ex rural districts). . the development of new products both on the lending and deposit side for the SME clientele (ex. leasing). . financing the delivery of advisory services for applicants/customers. European Investment Bank

  13. Advisory Services for SME applicants ◊Support to business plan preparation. ◊Advise and counselling to investors during investment and operation phase. ◊ Development and application of management system packages (accounting, IT, HR, quality, strategic business planning). ◊Referral specialist support (technology, export market, research). European Investment Bank

  14. Concluding remarks ◊ Large and well established companies have access to Commercial Banks financing including for long maturities. ◊ Commercial banks are more reluctant to finance Infrastructure and SMEs. Thus, the catalytic role of Multilateral Development Banks. ◊ When dealing with SMEs, finance is sometimes not enough. TA can improve quality of the deal flow and reduce mortality rates. ◊ EIB has established on the 24/3/2011 with Center for Development of Enterprises, a EUR 1 million “SME Access to Finance Facility in the Caribbean” (SAFFC) for pre and post investment support and capacity building. European Investment Bank

  15. Concluding remarks (2) ◊ EIB is ready to look at a similar partnership with CADE targeting export oriented SMEs with finance and T.A . ◊ How could BSOs be associated to these different initiatives for the benefit of their members ? European Investment Bank

  16. Thank you for your attention Yves Ferreira Head of the Regional Representation in the Caribbean------------------------------------------------------------------------------European Investment Bank  1, Boulevard Général de Gaulle, F – 97200 Fort-de-France, Martinique Tel: (+596) 596 741 287   E-mail: y.ferreira@eib.org EIB Website: http://www.eib.org European Investment Bank

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