Guidance for Member States on Article 41 CPR - Requests for payment
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During the 2007-2013 period, in order to encourage the early implementation of financial engineering instruments, Regulation (EC) No 1083/2006 ("the General Regulation") provided that payments into the funds could be declared in interim payment applications to the Commission as eligible expenditure.
However, in some cases delays occurred in disbursing the funds to final recipients and management costs were not always linked to performance. Moreover, a serious concern has been in some cases the practice of over- allocation of resources to financial engineering instruments which then remain in the funds, accumulating interest and management costs and fees, instead of being disbursed to the final recipients. Such practices have been discouraged by the Commission, namely through guidance issued in 2008 and 2011, as they were considered not to be in accordance with sound financial management and delayed the positive effect investments could have on the economy.
An additional consideration for the 2007-2013 and earlier periods is that managing authorities (MA) faced difficulties in generating national contributions necessary to obtain the full reimbursement of programme contributions paid to financial engineering instruments upfront.
Against this background, and in view of the need to correct the aforementioned shortcomings, Article 41 CPR offers a mechanism:
- Providing more flexibility when it comes to the payment of national contributions to financial instruments (FIs), and
- Introducing phased applications for interim payment in a way that prevents excessive upfront payment of ESI Funds to FIs.
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