Program Maritime, Fisheries and Aquacultures
Description of the financial instruments, objectives, and performance indicators.
Financial instruments under Program Maritime, Fisheries and Aquacultures 2021-2027
FMFIB EAD implements financial instruments through holding fund under the Program Maritime, Fisheries and Aquacultures (PMFA) 2021 – 2027, co-financed by the EU.
The total amount of support from PMFA 2021-2027 for financial instruments is € 6,442,277.70 of which € 4,509,594.39 is provided by the European Union through European Maritime, Fisheries and Aquacultures Fund (EMFAF), and € 1,932,683.31 is national co-financing.
The financial resource will be used to structure financial instruments (FI) under three of the Program`s priorities: Priority 1 „Promoting sustainable fisheries and the conservation of aquatic biological resources“ - for activities „Improving the infrastructure of fishing ports, fish markets, landing sites and boat moorings to facilitate the unloading and storage of the unwanted catch“, „Support for improving the economic and social status of fishing operators, sub-activity - diversification of activities in the local blue economy“ and „Specific equipment of fishing vessels, activities and innovations, aiming at protecting the environment and biodiversity“, Priority 2 „Promoting sustainable activities related to aquaculture and the processing and marketing of fishery and aquaculture products“ – for activities „Productive investments in aquaculture“ and „Processing of fishery and aquaculture products“ and Priority 3 „Ensuring conditions for a sustainable blue economy in the coastal, island and inland regions and promoting the development of communities, engaged in fisheries and aquaculture“ – for the activity „Implementation of strategies for Community-Led Local Development“.
The resource will provide debt financial products for loans and guarantees with the following indicative allocation:
The objective of the financial instrument is to stimulate lending to final recipients under PMFA by providing loans and guarantees through selected financial intermediaries, thereby addressing sector- specific difficulties (lack of access to finance, high interest rates), and helping to overcome problems such as insufficient collateral, high credit risk, etc.
The target final recipients (FR) are micro, small and medium enterprises, large enterprises, registered small-scale coastal fishermen, fishermen`s organizations and enterprises in the sector, municipalities and other public institutions. A combination of FI and Grant is envisaged in a single operation to provide technical support.
Grant is provided directly to FR or for the benefit of FR to cover costs of preparing the project proposal, activities to promote FI, measures to increase the capacity of FR, trainings, etc.
The following financial products are planned to be implemented within the framework of the Holding Fund for FI under the PMFA 2021-2027.
Risk-Sharing Loans – loans for investment needs of up to € 510,000 and for working capital of up to € 300, 000, which will be provided for a period of up to 240 months, grace period for principal repayment of up to 3 years with possible extension in compliance with the policy of the financial intermediary. The part from the loan, financed under PMFA, may be provided at favourable interest rates and with reduced collateral, thus easing the requirements towards the final recipient.
Loans may be stand-alone or in combination with grant under PMFA for investment needs, implemented through two separate operations.
Expected loan amount in support of FR, including the contribution of the financial intermediary – € 4.9 mln.
Expected leverage effect – 2.16.
Guarantees – a debt instrument that covers the credit risk of financial institutions, each individual loan is with a guarantee coverage ratio of up to 80% , with the remaining 20% covered at financial intermediary`s own risk, in accordance with the pari passu principle.
The financial benefit of the Program`s public contribution is transferred to the eligible final recipients by reducing the collateral requested from the financial institution, improving the pricing related to the risk margin, or implementing other suitable mechanism (financing of riskier projects, etc.)
Expected amount available for FR – € 3.08 M.
Expected leverage effect – 1.25.
The maximum amount is € 510,000 for investment loans or € 300,000 for working capital.
The resources allocated for FI are intended for the implementation of activities and investments contributing to the achievement of the objectives of the PMDRA 2021-2027, including support for at least 34 projects under the Program.
