In the province of Western Pomerania 280 million zlotys were provided for the implementation of the Jeremie Initiative. By the end of May 2012 five competitions were launched for such financial products as global loans, counter- guarantees and portfolio guarantees1 in which credit guarantee funds, loan funds as well as commercial and cooperative banks took part.
1
As of 31 May 2012 there were two competitions held for global loans, one for a counter- guarantee. On 8 May 2012 the call for proposal was finished. As for the portfolio guarantee one competition was finished. By 31 August 2012 the call for proposals will have been finished for the second competition.
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Table 1 Jeremie Initiative – results in Western Pomerania at the end of May 2012
COUNTER-GUARANTEE Number of supported enterprises Share of HFM funds in the guarantee (in zlotys)
Value of granted cred- its/loans (in zlotys) West Pomeranian Re-
gional Fund of Credit Guarantee 489 32,437,249.52 80,145,652.80 Fundusz Wspierania Rozwoju Gospodarczego Miasta Szczecina 38 2,068,052.45 10,638,887.00
Fund of Credit Guarantee
in Stargard Szczeciński 42 3,205,818.40 6,023,950.80 Total 569 37,711,120.37 96,808,490.60 GLOBAL LOAN Number of supported enterprises Share of HFM funds in the loan value
(in zlotys)
Value of granted cred- its/loans (in zlotys) Szczeciński Fundusz
Pożyczkowy 54 7,183,675.00 9,676,500.00 Foundation for the Devel-
opment of Polish Agricul- ture
102 9,969,500.00 12,802,000.00
Polish Entrepreneurs
Foundation 199 23,701,992.00 30,823,060.00 Fundacja Centrum Inno-
wacji i Przedsiębiorczości 25 3,027,800.00 3,945,000.00 Regional Development Agency of Koszalin 9 606,277.65 670,627.00 Stowarzyszenie Inicjatyw Społeczno-Gospodarczych 19 2,367,200.00 3,151,000.00 Gospodarczy Bank Spół- dzielczy in Choszczno 2 256,170.00 348,600.00 Total 410 47,112,614.65 61,416,787.00 PORTFOLIO GUARANTEE Number of supported enterprises Share of HFM funds in the loan value
(in zlotys)
Value of granted loans (in zlotys)
FM Bank 2 39,680.00 62,000.00
Total 2 39,680.00 62,000.00
Sum total of all products 981 84,863,415.02 158,287,277.60 Source: Bank Gospodarstwa Krajowego.
The role of financial intermediaries for the development of the JEREMIE… 91
There have been already 70 agreements signed with the financial interme- diaries nationwide, including 14 agreements signed in the province of Western Pomerania. Their value in the region exceeded 170 million zlotys which com- pared with the total amount of 280 million zlotys allotted for the Jeremie Initia- tive amounts to 62.5%. Hopefully, the intermediaries will be provided with the next part of financial resources which will work out and then it will be given to the enterprises as soon as possible. The first results of the Jeremie Initiative are already tangible (see Table 1). The three financial products gave support in the form of credit or loan to over 980 enterprises from the province of Western Pomerania totalling over 150 million zlotys.
By performing analysis of the beneficiaries of the Initiative one can arrive at very interesting conclusions (Table 2). The micro enterprises (Figure 2) re- ceived the most support from counter-guarantees, global loans and portfolio guarantees.
Table 2 Jeremie Initiative – beneficiaries in Western Pomerania at the end of May 2012
Kind of enterprise
COUNTER-
GUARANTEE GLOBAL LOAN
PORTFOLIO GUAR- ANTEE Value of granted and guar- anteed loans (in zlotys) Number (pcs.) Value of granted loans (in zlotys) Number (pcs.) Value of granted and guar- anteed loans (in zlotys) Number (pcs.) Micro enterprise 61,501,24 0.60 457 46,204,88 7.00 342 62,000.00 2 Small enterprise 32,439,25 0.00 106 14,771,90 0.00 65 – – Medium enterprise 2,868,000. 00 6 440,000.0 0 3 – – Total 96,808,49 0.60 569 61,416,78 7.00 410 62,000.00 2 Source: own work based on data provided by Bank Gospodarstwa Krajowego.
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Fig. 2. Enterprises – participation in the Jeremie Initiative in all products (in% by the end of May 2012)
Source: own work based on data provided by Bank Gospodarstwa Krajowego.
By performing analysis of the beneficiaries based on the kind of enterprise one can see that majority of them are micro enterprises which go through the most of difficulties in the process of obtaining external finance. Both in terms of quantity and value most of the credits or loans granted through guarantee were given to the smallest enterprises. From all the beneficiaries nearly every one in five was a start-up, i.e. a company whose activity period is shorter than 24 months.
Conclusions
By examining the functioning of the Jeremie Initiative from the financial intermediaries’ point of view and on the basis of what role they play on the financial market one might venture an opinion that by levelling disproportions of the market they are able to distribute financial resources efficiently.
Currently, the Jeremie Initiative is at its initial stage of implementation. There are first tangible results of the competitions. The Holding Fund Manager
68% 82%
0% 20% 40% 60% 80% 100%
Value Quantity
The role of financial intermediaries for the development of the JEREMIE… 93
will soon reach a one-time turnover which means that revolving will be ful- filled. But it is definitely too early to evaluate the performance of the Manager, financial intermediaries and the whole idea of finance engineering instruments. It will be possible to achieve it after 2015 when the HFM will square accounts of the operation with the Managing Institution.
To date the interest of financial intermediaries in the competitions has shown that it should be in the domain of cooperative banks which operate on the regional scale and know the specifics of that market as well as of the branch banks which are interested in supporting the SMEs sector only. As the settled competition show the network commercial banks are not interested in it, since they operate globally and do not tend to carry a risk and finance young, innova- tive and regional enterprises. The Jeremie Initiative in our country is being im- plemented in five provinces on the regional level, which of course applies to their products and their regional character – something the network banks are currently not interested in. Not all the commercial network banks have resigned from taking part in the Initiative. The biggest commercial banks are not taking direct part in it, since they are in close cooperation with the credit guarantee funds. This kind of approach seems to be understandable because in order not to compete with the funds for guarantees the banks prefer to cooperate with them and use their guarantees in the process of issuing credit.
Not only will the implementation of the Initiative in the province of West- ern Pomerania bring real benefits for the enterprises, but it will also have a posi- tive impact on the shape and structure of the financial support system for the enterprises. The Jeremie Initiative will enhance the capital position of the local financial intermediaries which will result in reactivation of these institutions which have temporarily suspended financial support for enterprises. Although the shape and size of the local and regional banking and para-banking institu- tions are being crystallized some of them will soon need new and fixed capital funding in order to develop the Initiative efficiently. Although some challenges might crop up on the way, one can state that financial intermediaries play a significant role in the development of the Jeremie Initiative. It is mainly them who will decide whether or not it succeeds and to what extent the enterprise sector is supported.
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SCIENTIFIC JOURNAL
NO. 780 SERVICE MANAGEMENT VOL. 11 2013
JOANNA SADKOWSKA Uniwersytet Gdański
SELECTED DETERMINANTS AND THEIR INFLUENCE OVER