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• Financing the private sec tor in the Mediterranean par tner countries • Financing the private sec tor in the Mediterranean par tner countries
Private sector
in the Mediterranean partner countries
Lending to the private sector Against this backdrop, FEMIP gives priority to financing private sector
ventures, whether local initiatives or foreign direct investment. In order to
create an enabling environment for the development of private enterprise,
1995-2004: EUR 4.6 billion FEMIP also supports infrastructure projects, investment in human capital and
schemes specifically targeting environmental protection.
Global Loans To this end, FEMIP operations primarily involve three types of product:
Energy
(45%)
(16%) loans, investment capital (equity and quasi-equity) and technical assistance
grants.
Transport
(8%) FEMIP also endeavours to promote greater dialogue with all those involved
in the Euro-Mediterranean financial partnership, both on the institutional
Services
(2%) front and with the representatives of the private sector and civil society.
1
Industry Algeria, Egypt, Gaza/West Bank, Israel, Jordan, Lebanon, Morocco, Syria, Tunisia and Turkey.
(29%)
Financing the private sec tor in the Mediterranean par tner countries • Financing the private sec tor in the Mediterranean par tner countries •
Growth of financing for the private sector tially modest, with an annual volume in this sector equivalent to
EUR 15 million, they grew to an average of over EUR 900 million in
EUR million
2003 and 2004.
1000
800
FEMIP loans to the private sector break down as follows:
600
• EUR 2.6 billion (56% of the total for the private sector) served
400 to finance the expansion of private companies, through foreign
direct investment (Egypt, Jordan, Morocco, Tunisia, Turkey), and
200 joint ventures between promoters from Mediterranean partner
0
countries (Algeria). Of this total, 29% went to industry, 16% to
1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 the energy sector, 8% to the transport sector and the remainder
to services;
links with local intermediaries that have hitherto not had access • EUR 2 billion (44% of the total for the private sector) facilitated
to its financing or by providing technical assistance for identifying the financing of small and medium-sized enterprises (SMEs). In
projects and monitoring ventures financed throughout their life. virtually all the Mediterranean countries, FEMIP has deployed its
global loans in cooperation with local partner banks specialising
With financing worth EUR 4.6 billion put in place since 1995, cor- in SME finance. Such loans have supported almost a thousand
responding to nearly one third of its operations, FEMIP underpins small-scale productive ventures in industry and tourism, generat-
the growth of private enterprise – whether through foreign direct ing around 50 000 jobs.
investment, support for joint ventures between Mediterranean
partner country promoters or finance for SMEs. To encourage private sector development and promote joint
ventures between local and European operators, FEMIP also pro-
Lending has also focused on infrastructure projects, including the vides risk capital finance. This activity targets local venture capital
creation of modern industrial parks, as well as transport, telecom- companies supplying equity for start-up and high-growth SMEs.
munications, energy and environmental schemes fostering private FEMIP support consists of the acquisition of equity stakes in such
sector development. companies with risk capital, possibly coupled with medium and
long-term FEMIP loans to underpin their growth. Since 1995, some
The Bank’s first operations in the Mediterranean region, and more EUR 300 million in risk capital has been made available, mainly in
particularly in support of the private sector, go back to 1978. Ini- the form of global loans to local banks for setting up or consolidat-
ISBN 92-861-0335-2
Sustained support
for the private sector
Financing the private sec tor in the Mediterranean par tner countries • Financing the private sec tor in the Mediterranean par tner countries •
FEMIP’s Headquarters
EUR million 4, rue Lou-Hemmer
2500 L-1748 Findel