Microfinance at EIF: Risk Management’s keys to success of the European Progress Microfinance Facility

Since its launch in 2010, the European Progress Microfinance Facility (EPMF), supported by the European Commission and the European Investment Bank and managed by the EIF, has mobilised almost EUR 400m of overall support in the form of guarantees (EPMF-FMA) and cash products (EPMF-FCP) to some 43 000 micro borrowers, many belonging to vulnerable groups with limited access to traditional funding channels.

Under EPMF-FCP more than 45 transactions were signed in the form of senior loans, subordinated loans or risk sharing loans, for a total commitment of EUR 196m with MFIs, leasing companies, start-ups, public companies, small banks and large banks across 15 different European countries. 

Despite the diversity of EPMF-FCP in terms of type of intermediary, type of product and country, not a single default has been reported since the launch of the Fund, which’s commitment period ended in Q1 2016.                                     

During this presentation, Mr. Betti will share with the audience what EIF considers to be the “Risk Management’s keys to success of EPMF-FCP” but also the lessons EIF learned from this mandate and on which the facility leveraged to set-up the monitoring activity of the new microfinance mandate that is expected to be signed in the course of 2016.