This module will not be further enhanced. Support is limited to defect fixing only.

Introduction to European Investment Fund Guarantee

This module allows banks to credit the small and medium enterprises (SMEs) by using the collateral management in respect of EIF (European Investment Fund) guarantees.

Click here to understand the terms and abbreviations used in this module.

An EIF SME guarantee is a guarantee instrument based on the EU initiative, the SME Initiative, and is used to support small and medium enterprises – SMEs.

The EIF’s SME guarantee covers 50% of the loan balance. The guarantee is the secured collateral and its risk weight is zero in the banks’ capital solvency calculations.

An EIF EASI guarantee covers 80% of the loan balance and, as the maximum loan amount permitted is EUR 25,000, the guarantee maximum amount is EUR 20,000. The EASI guarantee is also a guarantee instrument based on the EU initiative and is used to support micro-finance or social enterprises loans. It is the secured collateral and its risk weight is zero in the banks’ capital solvency calculations.

The following items have been introduced as part of this functionality:

• The Eif Collateral Type field has been added to the EUIFGT.PARAMETER application to store the Collateral Type of the EIFG guarantee type.
• New fields, Collateral Max Value, Loan Max Value, Eif Commission Description and Eif Customer Code, have been added to the EUIFGT.PARAMETER application to parameterise the Maximum Collateral Value, Maximum Loan Value fields, the text will be displayed in the arrangement overview screen for EIFG supported loans, and Customer Code of EIFG.
• The Guarantee Program local reference field has been created in the collateral file and its value is stored in the EB.LOOKUP application.
• A new collateral type for the EIF guarantee has been created, EIFGTEE. The Eifg Type local ref field has been introduced in the COLLATERAL application with three options stored in the EB.LOOKUP application, namely:
  • SME initiative.
  • EASI micro-finance – MIK.
  • EASI social enterprises – SOS.
• A validation routine has been added to the COLLATERAL application when the Collateral Type field value is EIFG. The Eifg Type and Guarantee Program fields are mandatory.
• The EIFG Type and EIFG Program fields have been added to the COLLATERAL,FI version.
• New functionality has been added to update the collateral’s nominal value based on the loan outstanding amount online, to calculate interest and commission for EIFG. The calculation of the commission happens only when there is an EIF guarantee attached to the loan.