The European Investment Bank is lending EUR 100 million (Escudos 20 billion) to Banco BPI, under the 12th Global Loan signed with the group, for the medium and long term financing of small and medium-sized investment in Portugal and other European Union countries.
Banco BPI will on-lend the funds to private and public sector project promoters. The loan is for investment aimed primarily at increasing the productivity and competitiveness of small and medium sized enterprises (SMEs) and the modernisation of local infrastructure to be carried by municipalities and Public Private Partnerships. Additionally, health and education investments as well as energy saving and environment protection projects are also eligible for EIB/BPI funding under the new Global Loan (line of credit).
The EIB was created in 1958 by the founding treaty of the European Economic Community, the Treaty of Rome. It was set up to contribute to the integrated and balanced development of the Member States, as well as to their economic and social cohesion, by providing long-term finance for capital investment fulfilling EU objectives. Global loans are essentially lines of credit opened with banks and other national, regional or local financial intermediaries, which deploy the proceeds in the form of sub-loans targeted in favour of small and medium-scale investment schemes meeting the EIB's eligibility criteria.