In pursuance of its remit to promote small and medium-scale infrastructure schemes in the sectors of health, education and housing, rational energy use and environmental protection in assisted areas, including border regions, the European Investment Bank (EIB) is advancing an initial global loan (credit line) of EUR 50 million to Kommunalkredit Austria AG (KK).
Since 1995, the EIB has created an extensive network for global loans in Austria, in partnership with the country's leading financial institutions. In 2000, the EIB, the EU's long-term financing institution, made a total of EUR 735 million available for projects in Austria, almost half of which in the form of global loans.
At the signing of the contract with Kommunalkredit in Vienna, Ewald Nowotny, the EIB's Vice-President responsible for Austria, commented, "EIB global loans combine the financial means of the EIB with the contacts and local market know-how of intermediary financial institutions. This global loan to Kommunalkredit is destined to play a significant role, particularly in the perspective of the special programme for the areas bordering on accession countries proposed by the Austrian Government and currently being drawn up by the EU Commission and the EIB."
As a specialist bank which focuses on financing infrastructure schemes sponsored by public or semi-public promoters, Kommunalkredit is a leading partner for local authorities in Austria.
Kommunalkredit's chief executive, Dr. Reinhard Platzer, stated "Kommunalkredit, together with the EIB, can make a valuable contribution in central Europe through its existing contacts with the environmental funds operating in these countries, currently the most important source of finance for local authorities. Moreover, Kommunalkredit plans to establish a presence in these countries by making acquisitions so as to participate in the growth of local infrastructure financing. It already enjoys a 75% market share in Slovakia via its holding in Prvá Komunálna Banka".