The European Investment Bank (EIB), the European Union's financing institution, set up in 1958 under the Treaty of Rome, announces that it has signed two global loans, totalling ECU 30 million, one with Standard Bank and one with First National Bank both in Johannesburg.
The finance will go to small and medium sized infrastructure projects located in South Africa thereby helping to support the Government's policy stimulate private sector finance for infrastructure development.
EIB's Vice President Dr. Rudolf De Korte, on the occasion of a visit to the Republic of South Africa, signed the two loan agreements earlier this month.
The global loan is a financial mechanism utilised by the EIB, under which the Bank allocates credit through local intermediaries to small and medium sized projects.
Since beginning operations in South Africa in 1995, the EIB has lent over ECU 100 million, therefore contributing to the reconstruction and development programme of the country.
Conversion rates used by the EIB for statistical purposes during the current quarter are those obtaining on 30/12/1996, when 1 ECU = 5,86464 ZAR, 0.74 GBP.