H2020 Coordinators day 1205 20 DG RampI Designated service of the Commission for the management of the Guarantee Fund Verónica MUÑOZ Agenda Creation general view and ID: 1011558
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1. H2020 Participant Guarantee Fund H2020 Coordinator's day12.05.20DG R&I – Designated service of the Commissionfor the management of the Guarantee FundVerónica MUÑOZ
2. AgendaCreation, general view and objective of the Participant Guarantee Fund (PGF)Legal basis:Rules for participation H2020 of 11/12/2013 MechanismsContributionsReimbursementsInterventionsStatistics of the PGF
3. Creation of the PGF FP7 Participants' Guarantee Funds 2 Funds = EU Fund + EURATOM FundFP7 Projects from Commission, Agencies & GSAH2020 Participants' Guarantee Funds H2020 projects from Commission, Agencies, GSA & Joint Undertakings H2020 PGF (only 1 Fund that covers both FP7 + H2020)
4. CAPITALINTERESTSPARTICIPANT GUARANTEE FUND (PGF)CONTRIBUTION5% Max grant amountRetained at 1° PF paymentREIMBURSEMENT Returned with payment of the balanceINTERVENTIONDIRECT or INDIRECT to cover losses in EU budgetDG ECFIN – Manager of Financial AssetsInvestment in Financial MarketsParticipantsEU budget
5. To protect the financial interests of the EU budgetArticle 38 (1) of the ‘H2020 Rules for participation’INTERVENTIONFund covers the risk of non-recovery of sums due to the Union under actions financed through grants by EC* * except for: liquidated damages or financial penaltiesObjective of the PGF
6. Regulation (EU) n°1290/2013 of 11/12/2013: "Rules for participation" - Articles 38 and 39creation of the H2020 PGF – H2020 PGF replaces and succeeds the PGFs FP7 No change compared to FP7 PGFcontribution 5% of the max grant amount deducted from the 1st prefinancing paymentcontribution is released at the end of the actionPGF interests used for interventionsChanges for H2020 PGFUnion funding bodies (JU's) contribute to PGFFinancial management assets: EIB, Financial entity or Commissionno more interests: interventions on hold
7. Mechanisms: CRI ContributionsReimbursementsInterventions
8. CONTRIBUTIONS5% Max grant amount fixed in the GADeduction from first pre-financing paymentEuropean Commission (DG ECFIN) invests the capital in the financial markets
9. REIMBURSEMENTSFull contribution to the Fund is reimbursed at the end of the action (with the payment of the balance)Possibility of offsetting against amounts owed by beneficiary to the EU (no consent needed) – H2020 Model Grant Agreement Art 21.4 3 possibilities :Reimbursement to participants (100%)Reimbursement to the EU budget (100%)Partial reimbursement (coordinator/EU budget)
10. INDIRECT INTERVENTIONDIRECT INTERVENTIONNon-recovery of sums due from beneficaries to CommissionGuarantee Fund transactions:Launched under certain conditions: Guarantee Fund transactions:INTERVENTIONWHEN?HOW? unpaid Debit NotePayment of Debit Note to Commissionnew Debit Note against beneficiaryOn-going actionBeneficiary terminated from GA and not reimbursing unsued pre-financing to coordinatorConsortium needs that pre-financing to finalise actionPayment of lost amount to consortium Debit Note against beneficiary
11. SITUATIONS THAT COULD TRIGGER A PGF INTERVENTIONDIRECT INTERVENTION INDIRECT INTERVENTION Start ACTIONEnd ACTIONParticipant Terminated (Pre-financing not reimbursed to coordinator)Coordinator terminated (Non-distribution of pre-financing)RO Participant terminated RO Non distribution of interim payment RO Payment of the balance coordinator / participant RO Non distribution of payment of the balance RO Audit DIRECT INTERVENTION conditions (if not, 3b):Action still on-goingTermination of participant/coordinator (GA amendment)Action objectives are not changedIntervention transactions in GF01 ABAC: PAYMENT ORDER from GF in favour of coordinator RECOVERY ORDER from GF against defaulting participant / coordinatorIf any of these RECOVERY ORDERS are not paid in due time (45 days) an INDIRECT INTERVENTION of the Guarantee Fund is launchedIntervention transactions in GF01 ABAC: PAYMENT ORDER from the Fund to the Commission (budget line) RECOVERY ORDER reissued from the Fund against the defaulting participant (same amount, deadline and interest rate as 1st RO)Payment of the balance
12. Statistics of PGF H2020(from 2007 until 30.09.2019)Contributions 4.48 EUR billionReimbursements 2.44 EUR billionInterventions* 108.43 EUR million Accumulated interests 153.65 EUR millionAvailable interests for 44.83 EUR Million future interventions*Net amount after recoveries and compesations
13. Thank you