The EIB and the Portuguese Government launch a EUR 250 million credit line to finance the investments of municipalities
- The line will contribute to financing priority investments approved under Portugal 2020 structural funds
- Municipalities and local institutions will benefit from loans on advantageous terms with a maturity of up to 20 years
Portuguese municipalities and municipal companies will be able to take advantage of the financing provided by the European Investment Bank (EIB) to foster employment and economic growth. The bank of the European Union has provided a EUR 750 million loan aimed at supporting selected investments defined under the Portugal 2020 Partnership Agreement.
Today, the EIB and the Portuguese Government have officially launched the first EUR 250 million tranche of this EUR 750 million credit line, dedicated to financing municipal projects, at an event held in Lisbon with the attendance of the Portuguese Minister of Finance, Mário Centeno, the Minister of Planning and Infrastructure, Pedro Marques, and the EIB Vice-President, Emma Navarro.
The funds will be managed by the Portuguese Agency for Development and Cohesion and will finance investments focused on innovation and research, education, business development, health, energy efficiency and renewable energy, improvement of water supplies, integrated urban renewal, broadband coverage and e-government.
Priority will be given to small and medium-scale projects of less than EUR 50 million. The minimum loan amount provided under this EIB credit line will be EUR 10 000 and the municipalities will benefit from advantageous interest rates and from maturities of up to 20 years.
Each project will be required to go through economic and financial assessments, to comply with the criteria defined under the 2014-2020 programme and to target the following priorities: competitiveness and internationalisation, social inclusion and employment, human capital and efficiency in the use of resources. Eligible municipalities may be located throughout the entire Portuguese territory.
At the event held in Lisbon, EIB Vice-President Emma Navarro stated: “We are pleased to support the Portuguese economy through an EIB loan that will have a direct impact on local employment creation, one of the EU bank’s priorities in the country. This funding shows the EIB’s strong commitment to foster competitiveness and innovation, ensuring that Portuguese municipalities have the required resources to implement their projects and investments”.
“The launch of the first tranche of this EUR 750 million credit line will contribute to a significant boost of investment in the short and medium terms and support job creation and economic growth”, stated the Portuguese Minister of Finance, Mário Centeno. “This is a very tangible example of how European integration can promote smart, sustainable and inclusive growth”.
Pedro Marques, Portuguese Minister of Planning and Infrastructure, considered that “this line represents important support to the regional development and competitiveness programme promoted by the Portuguese Government under the Portugal 2020 municipal investment plan”.