FEMIP Loans
Most FEMIP operations consist of long-term loans, extended in one of two forms:
- Direct loans 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.
- Intermediated loans cater for projects with an investment cost below EUR 20-25m.
They are advanced to local intermediary banks and leasing bodies, which on-lend to finance investment undertaken by small and medium-sized enterprises or local authorities.
These 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 enables the provision of financial support for private sector operations with a higher risk profile than is normally acceptable to the bank.
| Loans | |||
| Intermediated loans | Direct loans | ||
| FEMIP resources | Mandate | Article 16.1 of EIB Statute1 | |
| Objectives | Support SMEs through lines of credit to EIB partner commercial banks or development finance institutions, which on-lend to their 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 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. |
| 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 |
