Progress Microfinance has been implemented through two actions, both of which are managed by EIF. They are: 1) a guarantee instrument to providers of micro-credit (funded entirely by the European Commission); and 2) a structured investment vehicle set up under Luxembourg law, the European Progress Microfinance Fund, funded by the European Commission and the EIB. This Fund offers senior loans, subordinated loans (financing subordinated to senior creditors), risk- sharing loans (senior loans combined with risk participation in the micro-credit portfolio) and equity participation to micro-credit providers. The EU´s target commitment in the Fund is EUR 78m, matched by EUR 100m.
