The European Investment Bank continues its strong support for small and medium sized businesses (SMEs) and mid-cap companies across the European Union.
The EIB’s Board of Directors today approved loans worth up to EUR 2.3 billion for the benefit of SMEs and Mid-Caps. This brings total EIB support for SMEs and mid-cap companies so far in 2014 to EUR 9.1 billion. This includes approval for up to EUR 700 million that can be used for agricultural SMEs in Spain and up to EUR 200 million for investment by SMEs and mid-cap companies in Poland including the EIB’s jobs for youth initiative.
EIB President Werner Hoyer said, “Supporting investment by SME and mid-cap companies continues to be a top priority for the EIB. They do not only play an important role in maintaining and creating jobs but are also crucial for the European economy as a whole. We also must look ahead and keep in mind that Europe is competing with other major markets in the world.”
The approval of the SME trade finance facility of up to EUR 600 million for Portugal is an important step that enables the EIB to introduce this new product to a third country. This has already been implemented in Greece and signed in Cyprus. Under the new trade finance facility for Portugal, the EIB would provide guarantees to a network of international banks covering their risk on selected Portuguese banks carrying out trade finance operations for SMEs and Mid-Caps located in Portugal.
Regarding other key priorities of the bank, loans of up to EUR 1.2 billion were approved for strategic infrastructure projects, including up to EUR 125 million for the modernisation and extension of the electricity distribution network in Slovakia.
Up to EUR 1 billion will go to the area of energy efficiency, mostly for the construction and renovation of secondary schools in France with a particular focus on high energy efficiency standards. Projects in the area of research, development and innovation will benefit from loans worth up to EUR 290 million.
The Board of Directors of the European Investment Fund approved 17 new operations on 14th April through which the EIF will further reinforce its support for SMEs. These deals represent EIF commitments of EUR 483.86 million and are expected to leverage EUR 1.67 billion of capital. With these new approvals, the number of deals approved in 2014 now amounts to 35, with commitments in the order of EUR 1.05 billion and an expected overall leverage of EUR 4.5 billion.