en.econostrum

           

Beginning of a new era for the EIB




Increases in capital, creation of project bonds aimed at financing strategic projects - through rallying more funding the European Investment Bank (EIB) is realigning itself to better adapt to new challenges.



EUROPE. The next European Summit on 28 and 29 June will herald the beginning of a new era for the European Investment Bank (EIB). The Brussels meeting will ratify a 10bn€ increase in capital for the Luxemburg based institution (it currently has 232bn€ of capital).

"Heads of State and of European Government are considering a growth pact, equivalent to the budgetary pact. They are looking to be rapidly effective without leaning too heavily on public spending” explains the Vice President of the EIB, Philippe de Fontaine Vive.

This is a unique event since 1958 and the creation of the EIB at the heart of the European Union: "For the first time, taxpayers will contribute to the strengthening of our intervention capacity. Until now our bank self-financed its growth” underlines Philippe de Fontaine Vive.

The 10bn€ will allow the bank to ensure significant trans-European investments over the next three years. In parallel, the EIB will test a new way of using European budgetary resources by creating new innovative financial instruments: project bonds.

These EU funds with a multiplier effect will rally some 230m€ from the European budget.

Project bonds will protect the riskiest elements of certain strategic projects (between five and ten) that will thus be able to launch more quickly. These new financial instruments will encourage private investors to muster up to 4.5bn€ on these self-same projects.

"If all goes well during the pilot phase in 2012 and 2013, we will be able to develop into other sectors during the period 2014 to 2020” says Mr de Fontaine Vive. At their inception, projects bonds will only cover three areas: transport (infrastructure facilities), energy transport and telecoms (fibre optic development).

EIB still active in the Southern Mediterranean

Philippe de Fontaine Vive is satisfied with the EIB’s capital strengthening measures (photo F.Dubessy)
Philippe de Fontaine Vive is satisfied with the EIB’s capital strengthening measures (photo F.Dubessy)
The EIB’s realignment towards Europe does not take away from its commitment to the Southern Mediterranean. “Presently about 90% of our operations are carried out inside the EU and 10% outside. For the moment, the idea is to reserve this capital increase to activities that take place within the EU. If that turns out to be the case, our activities in Europe will be developed by a third, but nothing will be taken away from our operations outside the EU.” reassures Philippe de Fontaine Vive.

In addition, in the midst of the financial tumult that the Eurozone is going through, the EIB continues to be engaged in Spain, “a large traditional client to whom we continue to lend to”, and also in Greece. “The election results offer a positive perspective for discussions between the European Union and Greece, with whom we are finalising a participation plan. A guarantee fund for company loans will see the light of day before the end of 2012. We will be lending to Greek banks so that they in turn can lend to companies” reveals the EIB Vice President.

version française

Frédéric Dubessy avec la BEI


Tuesday, October 30th 2012



Article read 301 times


Articles which should interest to you
< >

Thursday, March 30th 2017 - 15:15 Turkey building world's longest suspension bridge