EU Programmes in Finland

EU CommissionDG Regio/ERDFDG Employment/ESFDG Agri/EAGGF, FIFG

Ministry of the InteriorERDFObjective 1 and 2Interreg, Urban

Ministry of LabourESFObjective 3Equal

Ministry of Agriculture and ForestryEAGGF, FIFGALMA (regional development programme for agriculture)Leader+

Managing and paying authorities

Intermediary bodies

Ministry of Trade and Industry

Ministry of Education

Ministry of Social Affairs and Health

Ministry of the Environment

Ministry of Transport and CommunicationsRegional units

Regional Councils (19)

State Provincial Offices (6)

Regional Environment Centres (13)

Finnish Road Administration (9)

R E G I O N A L M A N A G E M E N T C O M M I T T E E S

Tekes Finnvera plc

T&E Centres (15)

Finnish Obj. 1 & 2 SF-Programmes 2000 – 2006

Direct Business Aids- investment- development- operational environment

Technology Development(Tekes)- R&D-measures

Finnvera Plc’s Soft Loans- micro loans- entrepreneur loans- investment loans- (guarantee option)

BusinessDevelop-ment

Other priorities

Leverage Effect

• General Regulation, preamble (40): • ...in order to strengthen the leverage effect of Community

resources ... the forms of the Structural Funds should be diversified ...

 • GR, art 29 (contribution of the funds) paragraph 4 indent

(b) (iii): • In the case of investments in SME´s, these rates may be

increased by an amount for forms of finance other than directs assistance, provided that this increase does not exceed 10 % of the total eligible cost.

Leverage EffectDirect investment aid in Finnish Obj. 1&2 Programmes 2001 – 2002

Finnvera Plc’s investment loans in Finnish Obj. 1&22001 – 2002

Private finance = leverage

Finnvera loan and private finance = leverage

Aid, in average19.7 %

Aid, in average6.3 %

Finnvera’s ERDF-Loans During the 2000 – 2006SF-Programming Period

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

2006

2005

2004

2003

2002

2001 in average 7 years loan period

31.12.2006End of

Commitments

31.12.2008End of

Payments

Programme Closure (2009) Eligible Expenditure in Outstanding Finnvera Loans31.12.2008

End ofPayments

2006

2005

2004

2003

2002

2001

Blocked Account of the Financial Institution (Finnvera)

Subsidies falling due after 31.12.2008- interest subsidies- credit loss compensations

Estimate of Remaining Subsidies- underestimate: Finnvera Plc covers- overestimate: to be used for SME development in the same region2009 2010 2011 2012

Finnvera Plc´s ERDF Actions in the Strategy of Finnish EU-Programmes

General economic strategy of Obj. 1 & 2 programmes:

Strengthening of regional industrial and technological structures, promoting entrepreneurship, creating new jobs.

General economic strategy of Obj. 1 & 2 programmes:

Strengthening of regional industrial and technological structures, promoting entrepreneurship, creating new jobs.

Finnvera´s ERDF-cofinanced instruments: 

Growth scheme = investment and working capital loans• improving competitiveness of existing SMEs

• providing risk finance 

Micro loans scheme = women entrepreneur loans and micro loans• establishing new entreprises

 Entrepreneur loan scheme

• promoting business transfers• especially transitions of firm ownership from one generation to another

 Option for a scheme of guarantee premium aid

• providing risk finance for SMEs

Finnvera´s ERDF-cofinanced instruments: 

Growth scheme = investment and working capital loans• improving competitiveness of existing SMEs

• providing risk finance 

Micro loans scheme = women entrepreneur loans and micro loans• establishing new entreprises

 Entrepreneur loan scheme

• promoting business transfers• especially transitions of firm ownership from one generation to another

 Option for a scheme of guarantee premium aid

• providing risk finance for SMEs