Schema di iter in caso di Cogaranzia o Controgaranzia

1
The new Public Guarantee Fund for SMEs of the
Ministry of Industry (Law 662/96)

• Unification and rationalisation of previous
  funds
• Decentralised model of management
• Horizontality
• Reduction of admission costs

2
Modalities of Operations

• Direct Guarantee
• granted to banks and financial intermediaries
• Counter-Guarantee
• granted to mutual guarantee consortia (Confidi)
  or to other local funds
• Co-Guarantee
• granted directly to the financing subject
  jointly with Confidi or other local funds

3
Ownership and financial endowments

• established by the Ministry of Industry
• managed on a contractual basis by Mediocredito
  Centrale (admission decision is taken by a
  special Committee chaired by the Ministry of
  Industry)
• US 80 m initially allocated to the Fund
• US 1,3 bn of potential additional financing
• (up to US 1,9 bn in case of European
  Investment Fund counter-guarantee)

4
Eligible Operations

• medium and long-term investment loans
• participating loans
• equity participations
• any other financial operation directly related to
  the enterprises business
• (e.g. short term debt, consolidation this
  category is subject to de minimis EU regulation)

5
Horizontality of Fund intervention

• extension to all SMEs considered economically and
  financially sound
• - belonging to any economic sector (excluding
  handicraft sector and few cases as foreseen by
  EC regulations)
• - located in any Italian region
• any type of financial operation directly related
  to enteprises business (including innovative
  finance, venture capital, debt consolidation,
  short term credit )

6
COUNTERGUARANTEE IN THE HANDCRAFT SECTOR Three
levels system

• Mutual guarantee societies of 1st level
• Private mutual funds
• Regional mutual guarantee societies of 2nd level
• Private mutual funds
• Guarantee Fund Artigiancassa
• Public fund

7
Current state
150 Confidi in the Commerce and Tourism sectors
are currently operating in Italy
Statistics
28 March 2003
8
Critical elements

• Reduced organisational dimension

• Insufficient capitalisation

• Limited risk funds

• Inability to use public counter-guarantee funds

The need for reorganisation
9
Positive elements

• Present at local level

• Close to businesses, able to assess their needs

• Secured credit funds (2,500,000 Euro)

The need to keep loan applications and the
granting of guarantees on a local level
10

• State legislation has set aside 38,424,393 Euro
  of public funding in favour of finance companies
  created by trade associations in which at least
  30 Confidi holding 70 or more of their share
  capital are involved.

11
Aims of the law

• To provide counter-guarantees

• To improve the running of Confidi

• To encourage mergers

• To provide enterprises with technical assistance.

12
Granting of counter-guarantees

• The law provides for a public contribution its
  equal 10 times to the economic fund of the entire
  companies balance

• The finance societies counter-guarantee up to 90
  of the guarantee offered by the Confidi.

13
Improving the running of Confidi
To create a network linking the Confidi and
finance companies.
14
Mergers
For mergers involving Confidi 9,812,681 Euro has
been set aside, supplementing risk funds by up to
5 times the amount of the risk fund resulting
from the merger.