MEDIA

Creative Europe Cultural and Creative Sectors

Guarantee Facility

MEDIA

DISCLAIMER

This document provides some information on the terms of the Creative Europe- Cultural and Creative Sectors Guarantee Facility. This document is not, and should not be construed as a binding document. This document does not constitute an offer of any nature whatsoever and does not create any binding obligations on the European Commission to enter into a contract with any third party in relation to Cultural and Creative Sectors Guarantee Facility. All data are subject to an adoption of the Creative Europe work programmes and budgetary allocations available as well as the specific conditions which may be agreed by the European Commission and European Investment Fund in a relevant Delegation Agreement for Cultural and Creative Sectors Guarantee Facility.

Financial Instruments in 2014-2020

Infrastructure

Horizon 2020 Equity and Risk Sharing Instruments

Instruments under Structural and Cohesion

Funds

EU level (central management)

National/regional instruments (shared management)

Off-the shelf FIs

Tailor made FIs

Significant higher amounts than currently!

Competitiveness & SME (COSME)

Equity & guarantees

Connecting Europe Facility (CEF) Risk sharing (e.g. project bonds) and equity

instruments

Employment and social innovation

(EaSI)

Creative Europe Guarantee Facility

Erasmus+ Guarantee Facility

1.Shared Management with MS (Common Provisions Regulation)

2.Centrally managed by COM (Financial Regulation)

Research, Development Innovation

Growth, Jobs and Social Cohesion

MEDIA

Creative Europe Programme objectives

General objectives

•Promote cultural and linguistic diversity and cultural heritage

•Strengthen the competitiveness of the European cultural and creative

sectors (CCS), in particular the audiovisual sector

Support CCS capacity to

operate transnationally

and internationally

Promote transnational circulation

and reach out to new

audiences

Strengthen the

financial capacity of

CCS

Foster policy development, innovation, new business

models

Specific objectives

CULTURE / MEDIA

Sub-programmes

Cross-sectoral Strand

and Guarantee Facility (including Capacity Building )

5

Access to Finance in the CCS

• Shortage of reliable data = lack of critical mass.

• Intangible nature of the assets (mainly IPR)= personal collateral is

typically requested

• Project based planning. Business plan= ca.10%

• Specific cash flow schemes (subsidies, 3Fs),

Economic performance OK

European FIs–with a few exceptions - do not currently have the in-house

necessary expertise for evaluating credit risk in the CCS

Financing gap estimated: B 8 to B13 euro

Advertising

Architecture

Fashion

TV & Radio

Publishing

Antiques &

Museum

Arts & Crafts

Creative Sectors

Video Games Design

Software

Music

Performing Arts

Movies Photo

In a nutshell: CCS GF

• Market driven Guarantee/Counter guarantee facility to share credit

risk (70%, up to 25% on portfolio)

• With banks investing in portfolios of loans

• Loans to organisations operating in the CCS

• No personal collateral

• Capacity-building / expertise for banks: non-financial leverage

• Managed by the European Investment Fund

• € 121 million fund raising credits for up to € ca.700M to the benefit of

SMEs in CCS

• Capacity Building Scheme

• Large scope of CCS

• Participation: EU/EEA

• Implementation: 2016-2020

7

How do EU financial instruments work in

practice – overview

8

9

CB: provision of expertise in aspects such as the intangible nature of collateral

assets, the size of the market, prototype nature of products and services;

expertise in building portfolios and evaluating risks associated with CCS

MEDIA

Budget for the Guarantee Facility (121M)

MEDIA

Visibility and awareness-raising

■ Communication/promotion of the CCS LGF

With Financial Intermediaries

With Ministries/governments

the network of Creative Europe Desks

umbrella organizations from CCS

With SMEs

Role of National Contact Points

Information session before entering into force

■ Calls for CCS GF & capacity building to be published early 2016

Thank you

• Maciej Szymanowicz, European Commission

• maciej.szymanowicz@ec.europa.eu