The Portfolio Risk Sharing instrument
This instrument involves a loan from the JEREMIE Holding Fund to a Financial Intermediary (a ‘Borrower') to co-finance a new portfolio of eligible Underlying Transactions (‘Portfolio'), combined with credit risk sharing of the Portfolio on a loan-by-loan (or lease-by-lease) basis.
The instrument aims to support additional bank lending to SMEs at the lower end of the loan size spectrum, by providing funding by means of a loan to financial intermediaries to be equally matched with the bank's own funding. The combined pot of funds is then to be on-lent to eligible SMEs at preferential interest rates. The credit risk of each eligible SME loan included in the portfolio is shared with the Financial Instrument.
The objective of the Financial Instrument is to enhance SME access to finance by primarily:
i) providing funding and effective credit risk sharing to Financial Intermediaries to increase the availability of funding for SMEs
ii) incentivising Financial Intermediaries to offer better financing terms for the SMEs, in particular to reduce interest rates charged to SMEs
The related State Aid Scheme can be downloaded here or found in the Commercial Gazette no. 39/2014.
Appendix no. 1 related to the State Aid Scheme can be found here.
Call for Expression of Interest for Portfolio Risk-Sharing Loan - DEADLINE 28 AUGUST 2015
Call for Expression of Interest for Portfolio Risk-Sharing Loan - CALL CLOSED ON 30 JUNE 2013
Call for Expression of Interest for Portfolio Risk-Sharing Loan - CALL CLOSED ON 22 APRIL 2014