Elements for funding agreements and strategy documents – Article 59(1) and (5)

1. Required elements of the funding agreement for financial instruments implemented under Article 59(5): the investment strategy or policy including implementation arrangements, financial products to be offered, final recipients targeted, and envisaged combination with grant support (as appropriate); a business plan or equivalent documents for the financial instrument to be implemented, including the estimated leverage effect referred to in point (a) of Article 58(3); the target results that the financial instrument concerned is expected to achieve to contribute to the specific objectives and results of the relevant priority; provisions for monitoring of the implementation of investments and of deal flows including reporting by the financial instrument to the holding fund and to the managing authority to ensure compliance with Article 42; audit requirements, such as minimum requirements for documentation to be kept at the level of the financial instrument (and at the level of the holding fund where appropriate) in accordance with Article 82, and requirements in relation to the maintenance of separate records for the different forms of support in compliance with Article 58(6),where applicable, including provisions and requirements regarding access to documents by audit authorities of Member States, Commission auditors and the Court of Auditors in order to ensure a clear audit trail; requirements and procedures for managing the contribution provided by the programme in accordance with Article 92 and for the forecast of deal flows, including requirements for fiduciary or separate accounting as set out in Article 59; requirements and procedures for managing interest and other gains generated as referred to in Article 60, including acceptable treasury operations or investments, and the responsibilities and liabilities of the parties concerned; provisions regarding the calculation and payment of management costs incurred or of the management fees of the financial instrument in compliance with point (d) of Article 68(1); provisions regarding the re-use of resources attributable to the support from the Funds in compliance with Article 62 and an exit policy for the contribution from the Funds out of the financial instrument; conditions for a possible total or partial withdrawal of programme contributions from programmes to financial instruments, including the holding fund where applicable; provisions to ensure that bodies implementing financial instruments manage financial instruments with independence and in accordance with the relevant professional standards, and act in the exclusive interest of the parties providing contributions to the financial instrument; provisions for the winding-up of the financial instrument; other terms and conditions for making contributions from the programme to the financial instrument; terms and conditions to ensure that through contractual arrangements final recipients comply with the requirements of displaying of durable plaques or billboards in accordance with point (c) of Article 50(1), and other arrangements to ensure compliance with Article 50 and Annex IX for the acknowledgement of support from the Funds; appraisal and selection of bodies implementing the financial instruments, including calls for expression of interest or public procurement procedures (only where financial instruments are organised through a holding fund). 2. Required elements of the strategy document(s) referred to in Article 59(1): the investment strategy or policy of the financial instrument, general terms and conditions of envisaged debt products, target recipients and actions to be supported; a business plan or equivalent documents for the financial instrument to be implemented, including the estimated leverage effect referred to in Article 58; the use and re-use of resources attributable to the support of the Funds in accordance with Articles 60 and 62; monitoring and reporting of the implementation of the financial instrument to ensure compliance with Articles 42 and 50.

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Source: EUR-Lex (Cellar) · retrieved 2026-10-28 · Text as adopted (Official Journal); later amendments are not incorporated in this text.