The combination of financial instruments and grant has the potential to transform the use of financial instruments during the 2021-2027 programming period.
The new flexibilities in the 2021-2027 Common Provisions Regulation allow grants and investment products (loan, equity and guarantee) to be delivered as a single package of support.
Investment grants, capital rebates and forgivable loans, along with interest rate subsidies and technical assistance can now be combined in a single financial instrument operation, benefiting from much greater flexibility than in the past. Energy efficiency, Research, Development and Innovation and Urban Development are some of the sectors expected to benefit from the increased use of combined grants and financial instruments.
The new fi-compass factsheet ‘Combination of financial instruments and grants under shared management funds in the 2021-2027 programming period’, provides a comprehensive description of the new rules and how they can be applied by managing authorities, NPBIs and financial intermediaries.
Real-life examples and an extensive section with frequently asked questions provide readers with a practical insight into how these models can be used in Member States, tailored as necessary to meet the specific local circumstances.
The new factsheet is complemented by the notes of the Workshop undertaken under the fi-compass Knowledge Hub which was published in January 2021. Further fi-compass materials will be published later in the year on the topic to ensure fi-compass practitioners have all they need to design and implement these exciting new tools in the future.