FEMIP Loans

Most of FEMIP's operations consist of long-term loans, extended in one of two forms:

Individual loans (direct financing) are made directly to private or public sector promoters of projects where the investment cost exceeds EUR 20-25m.

The financing terms (maturity and grace period) are tailored to the type of investment, and appropriate security is required.
Credit lines (indirect financing) cater for projects with an investment cost below EUR 20-25m.

They are advanced to local intermediary banks and leasing bodies, which on-lend the funds to finance investment undertaken by small and medium-sized enterprises or local authorities.

Credit lines can also be used to meet the needs of micro-enterprises, in partnership with specialised associations.

In its lending activity, FEMIP can also draw on the Special FEMIP Envelope (SFE), which is a facility enabling the provision of financial support for private sector operations exhibiting a higher risk profile than is normally acceptable to the Bank.

	Loans
	Credit lines	Individual loans
FEMIP resources	Mandate		Article 18
Objectives	Support SMEs through lines of credit to EIB partner commercial banks or development finance institutions, which on-lend to their own customers.	Develop the Mediterranean partner countries' economic infrastructure, with special emphasis on private sector growth and the creation of an environment conducive to private investment.	Finance major infrastructure projects that are of mutual interest to the EU and the Mediterranean partner countries or contribute to “South-South” regional integration.
Beneficiaries	SMEs	Private and public sector promoters
Type of funding and selection criteria	Medium & long-term loans Average size: <EUR 25m (max. 50% of investment cost) The lending terms are determined by the financial intermediary and reflect the Bank’s advantageous rate. In foreign currencies, or depending on the exchange risk hedging facilities available locally, in local currency. Selection performed by intermediary institutions on the basis of their own credit judgment and according to criteria agreed with the EIB. The security structure is determined by the financial intermediary in keeping with its own risk management rules.	Medium & long-term loans Average size: >EUR 25m (max. 50% of investment cost) Fixed or floating interest rates as well as a range of other structures. Foreign currencies. The project must be technically, financially, economically and environmentally viable and fit within the remit of FEMIP. Adequate security structure depending on the nature of the project and the quality of the borrower.	Medium & long-term loans Average size: >EUR 25m (max. 50% of investment cost) Fixed or floating interest rates as well as a range of other structures. Foreign currencies. The project must be of mutual interest to the EU and Mediterranean partner countries. Adequate security structure depending on the nature of the project and the quality of the borrower.
Type of funding and selection criteria	The Special FEMIP Envelope (SFE) enables FEMIP to finance selected private sector operations in Mediterranean countries which have a higher risk profile than that accepted under “standard” EIB operations.
Sectors	All productive sectors, tourism and infrastructure	All productive sectors, tourism and infrastructure	Infrastructure, particularly transport and energy