The European Investment Bank (EIB), the European Union financing institution, is lending EURO 128 million (PTE 25 600 million) (1) to Instituto de Gestão do Crédito Público to upgrade facilities in eight Portuguese universities. The scheme developed under the aegis of the Ministry of Education is co-financed by the European Regional Development Fund and the State budget.

The eight tertiary education institutes concerned are in Lisbon (Classic University of Lisbon, Technical University of Lisbon, New University of Lisbon and High Institute of Work and Enterprise Sciences), Porto (University of Porto), Guimarães and Braga (University of Minho), Coimbra (University of Coimbra) and Acores islands (University of Acores). Several of the facilities are located in protected buildings or in the heart of historic sites that form part of the Portuguese architectural heritage. Once refurbished and adapted the eight education institutes will accommodate some 70 000 students, 8 000 faculty members and 2 300 support staff.

Sir Brian Unwin, EIB President and Chairman of the Board, said in Lisbon: "The Amsterdam Special Action Plan (2) was devised by the EIB to create growth and stable employment in the Union. With the transition towards more value-added industries and services the principal challenge for Portugal lies in matching the output of its educational system to the changing demand for skills. With this loan the Bank supports the protection of cultural heritage and improved facilities for tertiary education based on information technology and other modern facilities. The employability in the Single market of future engineers, medical doctors, scientists and other professionals has to be strengthened at a very early stage. Even though the labour market situation in Portugal compares favourably to that in most other EU countries, it can still be improved. More importantly, we also have to ensure the future global competitiveness of the European Union."

The European Investment Bank, the European Union's long-term lending institution, finances capital investment furthering EU integration, in particular: regional development; trans-European networks in transport, telecoms and energy; industrial competitiveness and integration; SMEs; environmental protection; and energy security. It also operates outside the EU within the framework of the EU's co-operation external policy. Owned by the Member States, the EIB raises its funds on capital markets (AAA issuer). In 1997, the EIB lent over EURO 26 billion, of which EURO 1.3 billion in Portugal, and borrowed EURO 23 billion on capital markets. TheAmsterdam Special Action Plan -ASAP- proposed by EIB to create employment throughout the Union by supporting investment in labour intensive sectors and SMEs with strong growth potential. In response to the Amsterdam Resolution on Growth and Employment (June 1997), the EIB's Board of Governors approved extension of the Bank's field of operations to include health and education. Together with urban renewal, environment protection and SMEs, these are priority sectors to strengthen the EU's economic and social cohesion and contribute to the creation of stable jobs. Under ASAP, the EIB is developing new financing instruments aimed at high technology and growth-oriented small and medium-sized enterprises (SMEs). These include the European Technology Facility, managed by the European Investment Fund, and venture capital funds set up jointly with EU Member States' financial institutions.

(1) The conversion rates used by the EIB for statistical purposes during the current quarter are those obtaining on 31/03/1998: 1 EURO = 1 ECU = PTE 203.473, GBP 0.94.

(2) ASAP proposed by EIB to create employment throughout the Union by supporting investment in labour intensive sectors and SMEs with strong growth potential.