17107/12 FL/ne 1 DG E 2 A COU CIL OF THE EUROPEA U ... - Europa

4. Implementation
Entrusted entities
Entrusted entities shall be selected in accordance with the Financial Regulation.
The implementation under indirect management mode may have the form of direct mandates to
entrusted entities. For instruments under direct mandates (i.e. in indirect management mode), the
entrusted entities shall manage the Union contribution to the Debt Instrument and shall be risk-
sharing partners.
In addition, the setting up of dedicated investment vehicles may be envisaged to allow the pooling
of contributions from multiple investors. The Union contribution may be subordinated to that of
other investors.
The design and implementation
The design shall be aligned with the general provisions for financial instruments set out in the
Financial Regulation.
The detailed terms and conditions for implementing the Debt Instrument, including monitoring and
control, shall be laid down in an agreement between the Commission and a respective entrusted
entity, taking into account the provisions laid down in this Annex and the Financial Regulation.
Fiduciary account
The entrusted entity shall set up a fiduciary account to hold the Union contribution and revenues
resulting from the Union contribution.
5. Use of the Union contribution
The Union contribution shall be used:
a. towards risk provisioning;
b. to cover agreed fees and costs associated with the establishment and management of the Debt
Instrument, including its evaluation, which have been determined in line with the Financial
Regulation and market practice;
17107/12 FL/ne 81
ANNEX TO ANNEX DG E 2 A E