Report from the Commission to the European Parliament, the Council, the European Economic and Social Committee and the Committee of the Regions. Implementation of the European Progress Microfinance facility – 2013

In 2013, the European Progress Microfinance Facility for employment and social inclusion entered into the second half of its investment period. Initiated in 2010 by the European Commission, Progress Microfinance will continue to offer its products to microcredit providers to allow for improved accessibility and availability of microfinance in the European Union until April 2016 at the latest.

Progress Microfinance was set up by Decision No 283/2010/EU of the European Parliament and of the Council to support microfinance via a wide range of instruments, in particular, guarantees and funded instruments. In addition to EU funding of €105 million, it also benefits from an additional €100 million provided by the European Investment Bank. Progress Microfinance consists of two parts: one provides microfinance intermediaries (MFIs) with guarantees, and the other provides MFIs with funded investments, such as loans and equity. Both parts are managed by the European Investment Fund (EIF).

This report will look at activities and developments in Progress Microfinance in 2013. Most of the data in this report are given as of 30 September 2013, with more up to date data used when available. As a result, most of the developments from 2013 refer to the period from 1 October 2012 to 30 September 2013. These are complemented by information from the ‘study on imperfections in the area of microfinance and options how to address them through an EU financial instrument’ and an ongoing interim evaluation of Progress Microfinance produced for the Commission.

The report’s structure follows the requirements set out in the Decision, starting with information on outreach to intermediaries and final recipients. The report then looks at the social impact of Progress Microfinance and its complementarity with other EU instruments. The outlook for the future is outlined at the end of the report, including views on the successor financial instrument under the Programme for Employment and Social Innovation (EaSI), implementation of which will begin in the second semester of 2014.

• Primary Source

EUR-Lex: COM(2014)639: Follow the progress of this report through the decision-making procedure http://eur-lex.europa.eu/legal-content/EN/HIS/?uri=COM:2014:639:FIN

ESO: Background information: Employment: Progress Microfinance loans worth €182 million given to over 20,000 entrepreneurs for start-ups and expansion http://www.europeansources.info/record/press-release-employment-progress-microfinance-loans-worth-e182-million-given-to-over-20000-entrepreneurs-for-start-ups-and-expansion/

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