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Glossary

Find an explanation of most used terms in relation to financial instruments

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Title Term Definition Reference
Securitisation

A transaction or scheme, whereby the credit risk associated with an exposure or pool of exposures is tranched, having both of the following characteristics:

(a) payments in the transaction or scheme are dependent upon the performance of the exposure or pool of exposures;

(b) the subordination of tranches determines the distribution of losses during the ongoing life of the transaction or scheme.

For ESIF, securitisation is possible under the SME initiative (Article 39 CPR) only i.e. for ERDF and EAFRD contributions to the SME initiative.

 Regulation 575/2013; Article 39 CPR
SMEs

Small and medium-sized enterprises – as defined in EU law: EC recommendation 2003/361.
The main factors determining whether a company is an SME are:
1. number of employees and
2. either turnover or balance sheet total

Company category Employees Turnover (or) Balance sheet total
Medium-sized < 250 ≤ € 50 m ≤ € 43 m
Small < 50 ≤ € 10 m ≤ € 10 m
Micro < 10 ≤ € 2 m ≤ € 2 m

 

 Article 2(28) CPR; and Commission Recommendation of 6 May 2003 concerning the definition of micro, small and medium-sized enterprises (2003/361/EC)
Support from the ESI Funds

Support from the ESI Funds means support from one or more of the following funds: European Regional Development Fund, European Social Fund, Cohesion Fund, European Agriculture Fund for Rural Development, European Maritime and Fisheries Fund.

Support from the ESI Funds does not include the national co-financing.

 Articles 43, 44, 45 CPR