The European
Investment Fund (EIF) and the European Commission have launched a new
initiative to provide a total of EUR3bn of loans to Erasmus+ Master
students via financial institutions.
This new and
first mandate from the Directorate General of Education and Culture (DG EAC)
allows the EIF to provide capped guarantees and counter-guarantees to financial
intermediaries extending loans to mobile students undertaking a master’s degree
in another country taking part in the Erasmus+ programme [1]. It is expected
that 200,000 students will benefit from this new scheme by 2020. The Erasmus+
programme is an EU success story, helping students who study abroad to improve
their knowledge and skills, preparing many of them for international careers;
this new initiative within Erasmus+ will maximise the impact of EU resources to
help raise skills levels in Europe.
EIF Chief
Executive, Pier Luigi Gilibert said: “As confirmed in the Europe 2020 strategy, higher education is
a driver of growth for Europe and this new initiative within Erasmus+ will
encourage learning mobility in the EU. Student mobility is in the collective
interest of the EU Member States and the Erasmus+ Master Loan Guarantee
Facility will help to bridge the existing access to finance market gap”.
Tibor
Navracsics, Commissioner for Education, Culture, Youth and Sport, said: "The European Commission is
firmly committed to ensuring the long-term success of Erasmus+ Master Loans to
support talented young Europeans who want to study for a Master's degree in
another Erasmus+ programme country. I encourage banks across Europe to
sign up to this new funding scheme. This will help us to offer young people
more opportunities, enhancing their skills and fostering stronger economic
growth”.
The EIF has opened
a call for expression of interest to which eligible financial
institutions (banks, guarantee institutions, funds etc.) can apply. After a
thorough selection process, the EIF will select financial intermediaries which
can then make the new finance available to students.
EU-28, Iceland, the former Yugoslav Republic of Macedonia, Turkey, Liechtenstein, Norway.
About the EIF
The European
Investment Fund's (EIF) central mission is to support Europe's micro, small and
medium-sized businesses (SMEs) by helping them to access finance. EIF designs
and develops venture and growth capital, guarantees and microfinance
instruments which specifically target this market segment. In this role, EIF
fosters EU objectives in support of innovation, research and development,
entrepreneurship, growth, and employment. EIF’s total net commitments to
private equity funds amounted to over EUR 7.9bn at end 2013. With investments
in over 435 funds, EIF is a leading player in European venture due to the scale
and the scope of its investments, especially in high-tech and early-stage
segments. EIF’s guarantees loan portfolio totalled over EUR 5.6bn in over 300
operations at end 2013, positioning it as a major European SME guarantees actor
and a leading micro-finance guarantor.
About Erasmus
+ Master loans
The Erasmus+
programme, of which the Erasmus+ Master Loan is part, is the biggest mover of
students in the EU, with around 300.000 higher education students and staff
studying, working or taking a traineeship in another European country every
year. It is managed by the European Commission's Directorate
General for Education and Culture (DG EAC) and its executive agency.
The DG's activities in education are also framed by the Education and Training
2020 strategy (ET2020), which contributes on education to the Europe 2020
strategy, designed to promote growth and jobs in Europe.
