Through the instruments, which include financing with risk-sharing, the FMFIB will provide financing to financial intermediaries to build loan portfolios that meet the eligibility criteria of the respective Operational Programme.

The financial intermediaries are required to match the resources made available by the Fund of Funds with additional co-financing for each loan, at a rate that depends on the specific features of the respective instrument.

The FMFIB and the financial intermediary will share the risk of non-repayment by final recipients pari passu and proportional to the amount of financing made available within each loan.

These instruments will enable the target final recipients to use financing at more favourable pricing terms and loan collateral requirements.

Financing with risk-sharing is envisaged in the following Operational Programmes with which the FMFIB has signed financing agreements:

• OPHRD: Risk-sharing micro-finance facility for business start-ups, social enterprises and vulnerable groups of individuals;
• OPIC: Risk-sharing micro-finance facility;
• OPRG: Urban Development Funds.