Article 8 Specific rules on guarantees delivered through financial instruments (Third subparagraph of Article 38(4) and Article 39a(7) of Regulation (EU) No 1303/2013)F2

Where financial instruments provide guarantees, the following requirements shall be fulfilled:

1. (a)

   an appropriate multiplier ratio shall be achieved between the amount of the programme contribution set aside to cover expected and unexpected losses from new loans or other risk-sharing instruments to be covered by the guarantees and the value of corresponding disbursed new loans or other risk-sharing instruments;

2. (b)

   the multiplier ratio shall be established through a prudent F1ex ante risk assessment for the specific guarantee product to be offered, taking into account the specific market conditions, the investment strategy of the financial instrument, and the principles of economy and efficiency. The ex ante risk assessment may be reviewed where it is justified by subsequent market conditions;

3. (c)

   the programme contribution committed to honour guarantees shall reflect that ex ante risk assessment;

4. (d)

   if the financial intermediary or the entity benefiting from the guarantees has not disbursed the planned amount of new loans or other risk-sharing instruments to final recipients, the eligible expenditure shall be reduced proportionally.