Brussels, 10/09/2008 (Agence Europe) - At the annual European Microfinance Network conference in Nice on 8-10 September, Danuta Hübner, the European commissioner for cohesion policy, gave the green light to JASMINE, a joint Commission and European Investment Bank (EIB) initiative to increase the provision of microcredit in Europe.
JASMINE (Joint Action to Support Micro-finance Institutions in Europe) aims at providing technical assistance to micro-finance institutions (MFI) in order to help them become credible financial intermediaries that can obtain capital more easily. The JASMINE cell, which will be set up at the European Investment Fund (EIF), will be responsible for assessing whether MFI candidates' enterprise plans are eligible for funding. It will also help these candidates reach a quality level in their governance, financial management and trade policy. The aim is to direct these institutions to adopt good practices that enable them to obtain a quality label. JASMINE will also take part in implementation of training and advertising on the European microcredit initiative for member states, regions, banks and MFI. The initiative also aims to fund the most promising non-banking institutions so that they obtain more loans for project developers. JASMINE will examine the viability of the demands formulated and produce appropriate proposals to ensure co-funding of these operations by the EIB and private partners. JASMINE's originality is owed to the fact that it involves several EU institutions (Commission, EIB and Parliament) as well as public and private banks, the EUROFI (European financial and banking services reflection group) and donors. Starting capital for the whole project is around €50 million. The European Commission and the European Investment Fund (EIF) will contribute to implementation of this initiative and put resources into it from cohesion policy and funds from the EIB/EIF, as well as from other financial partners. JASMINE will complement the JEREMIE initiative, launched by the Commission and EIB in 2006 to enable EU member states and regions transform part of their structural funds into financial products specially devised for Small and Medium-sized Enterprises. (O.L./transl.rh)