Annexes to COM(2020)346 - Management of the Guarantee Fund of the European Fund for Sustainable Development - Main contents
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This page contains a limited version of this dossier in the EU Monitor.
| dossier | COM(2020)346 - Management of the Guarantee Fund of the European Fund for Sustainable Development. |
|---|---|
| document | COM(2020)346  |
| date | July 31, 2020 |
The Guarantee Fund was established in 2018 and the first payment accounting for EUR 75 million was made in November 2018. By 31 December 2019 the total payments received from the EU Budget into the Guarantee Fund amount to EUR 600.1 million. Until end-2019, there have been no calls on the EFSD guarantee.
5. Assessment of the adequacy of the target amount and the level of EFSD Guarantee Fund
As of 31 December 2019 in total three EFSD guarantee agreements that amount to EUR 165 million were concluded, including one signed in 2018, and two in 2019 5 .
The target amount of the EFSD Guarantee Fund has been set at 50% of the total EU Guarantee obligations. The total payments received as of 31 December 2019 from the EU Budget into the Guarantee Fund amount to EUR 600.1 million, thus the provisioning covers in full the risk of the guarantees signed.
In line with Article 4.2 of the EFSD Regulation, in the operational management of the EFSD, the Commission is supported by the Guarantee Technical Assessment Group (G-TAG) comprised of credit-risk experts drawn from several European financial institutions. The role of G-TAG is to provide independent and impartial technical expertise on banking related matters to the Commission, to support its decisions related to the allocation of the EFSD Guarantee, as well as on the risk-monitoring during the implementation of the projects benefitting from the guarantee.
(1)
Regulation (EU) 2017/1601 of the European Parliament and of the Council of 26 September 2017 establishing the European Fund for Sustainable Development, the EFSD Guarantee and the EFSD Guarantee Fund
(2)
COM(2020) 224, Report from the Commission to the European Parliament and the Council on the implementation of the European Fund for Sustainable Development
(3)
This is in line with the money-weighted return of -0.103%, which considers the significantly growing size of the EFSD Guarantee Fund in 2019 due to budgetary contributions in the building-up phase. Money-weighted return was lower in 2019 than the time-weighted performance referred to in point 3.3. The time-weighted return is the official performance reported for all EC Asset Management activities, as it allows to eliminate the distorting effects created by inflows and outflows.
(4)
Estonia: EUR 100,000; Czech Republic: EUR 300,000; Denmark: c. EUR 9.4 million; Bill and Melinda Gates Foundation: c. EUR 39.2 million (USD 50 million) – with EUR 19.2 million paid-in.
(5)
And additional four for the total amount of EUR 196 million had been signed by April 2020.