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F inancial engineering instruments

F inancial engineering instruments. Managing Authority of EU funds September 13 th 2011. Main goal.

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F inancial engineering instruments

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  1. Financial engineering instruments Managing Authority of EU funds September 13th2011

  2. Main goal The most important is to ensure that the financial engineeringinstruments is implemented and controledin acordnace with the Article 45 of Regulation (EC) No 1828/2006 and Community Guidelinesonstateaidforrescuingandrestructuirngfirmsin difficulty.

  3. Recommendation by the AA (I) • Immediately temporarily suspend granting of loans within Activity 2.2.1.4 “Loans for development of enterprise competitiveness” andgranting of guarantees within 2.2.1.3 “Guarantees for development of enterprise competitiveness” of the OP “Entrepreneurship and Innovations” until the methodology for evaluation of LGA guarantee applications and MLBL loan applications is improved to ensure its compliance with Article 45 of EU Regulation No 1828/2006.– Implemented • Applying the improved methodology to assess the compliance of loans and guarantees issued in the period after January 1, 2011.- Inimplementationprocess

  4. Recommendation by the AA (II) 3. The amount of inappropriately granted loans and guarantees should be returned to the ERDF taking into account losses caused to the Fund.- Inimplementation process 4. The MA shall ensure implementation and monitoring of the implementation of the above mentioned recommendations. The AA shall be informed immediately about implementation of recommendations. - Inimplementation process

  5. Action plan of the Managing Authority Implementingelaborated action plan the MAhas made great efforts to solve the issues regarding implementation of the financial engineering instruments, to respectthesoundfinancialmanagementprinciplesand to mitigatethe risks ofineligiblecosts, to ensurethatpaymentsarerestoredinfull.

  6. Issues for discussion • EC interpretation of Article 2 (7)of Regulation (EC) No 1083/2006regarding FI ‘irregularity’: any infringement of a provision of Community law resulting from an act or omission by an economic operator which has, or would have, the effect of prejudicing the general budget of the European Union by charging an unjustified item of expenditure to the general budget. InthecontextofArticle 98 (2) and 98 (3) of Regulation (EC) No 1083/2006 2. The MS shall make the FC required in connection with the individual or systemic irregularities detected in operations or operational programmes. The corrections made by a MS shall consist of cancelling all or part of the public contribution to the operational programme. The MS shall take into account the nature and gravity of the irregularities and the financial loss to the Funds. The resources from the Funds released in this way may be reused by the Member State until 31 December 2015 for the operational programme concerned in accordance with the provisions referred to in paragraph 3. 3. The contribution cancelled in accordance with paragraph 2 may not be reused for the operation or operations that were the subject of the correction, nor, where a financial correction is made for a systemic irregularity, for existing operations within the whole or part of the priority axis where the systemic irregularity occurred.

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