February 8, 2011

JEREMIE funds to finance SMEs

JEREMIE, Joint European Resources for Micro to Medium Enterprises, "Resurse Europene comune pentru Intreprinderi de la Micro la Medii" is a common  initiative launched in 2005 of the European Commission/ Comisiei Europene together with the European Investment Bank / Grupul Bancii Europene pentru Investitii (EIB) and the European Investment Fund / Fondul  European de Investitii (EIF) in order to promote increased access to finance for the development of micro, small and medium-sized enterprises (SMEs/ IMMs )/ intreprinderi mici si mijlocii  in the regions of the EU.
The implementation of JEREMIE program in Romania was agreed in 2007 on the basis of a Memorandum of Understanding between the Government of Romania, whereby the Public Finances Ministry, and the European Investment Fund.

On February 18, 2008, the Romanian Government represented by the Ministry of Economy and Finance (MEF), and the European Fund for Investments (EFI / FEI) signed the Financing Agreement and a letter of costs (for 100 million Euros) for the JEREMIE program in Romania.

The funds are from European Regional Development Fund / Fondul European de Dezvoltare Regionala , from the "Sectoral  Operational Program Enhancing (Increase of ) Economic Competitiveness / "Programul Operational Sectorial Cresterea Competitivitatii Economice" with a view to implementing the major intervention area "Access of Small and Medium-Sized Enterprises to financing / Acces la finantare pentru IMM-uri" under priority axis 1 - 'An innovative and eco-efficient production system/ Un sistem de productie inovativ si eco-eficient'.
The sole manager of JEREMIE Program in Romania is European Fund for Investment, and, according to their proposal, they approve the yearly budget for costs, after preliminary consultation with Romanian management authority.

On January 24th, 2011, were approved 315 million Euros, a new pre-financing sum to be used next two years as specific grants for the SMEs.  The "financing guarantee agreement/ acordul de garantare" was signed with the financial intermediaries BCR / Banca Comerciala Romana and Raiffeisen Bank, to implement JEREMIE risk capital funds  in Romania (perhaps bank offers will be available soon).  In 2011-2012,  SMEs / IMMs will have access to financing (with the length of the loan period up to 6 years) and to increase their competitiveness / production. (Click here to read the Romanian version of the official press release).

Do you intend to jump right in the business environment? It is time to think more about "SMEs umbrella fund" opportunities.

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