The EIB provides a EUR 30 million Global Loan to Hansabank operating in the Baltic States to finance small- and medium-scale projects promoted by SMEs and municipalities in Estonia, Latvia and Lithuania.
With this global loan Hansabank will finance projects in the areas of industry, services and tourism as well as small- and medium-sized investments in the field of environmental protection, energy savings, infrastructure, including health and education. Final beneficiaries will be small- and medium-sized enterprises and private or public promoters of infrastructure and other eligible projects.
EIB global Loans are special credit lines to selected partner banks operating in the individual countries. The scheme is a successful delivery mechanism of long-term EIB funds to support small- and medium-scale investments. The EIB finances small and medium-size projects with a total investment higher than EUR 40 000 and less than EUR 25 million via Global Loans. EIB partner banks, like Hansabank, assess each project, assume the credit risk and set the loan conditions for the final beneficiary. Interested investors should address the intermediaries directly.
Hansabank is a long-standing EIB global loan intermediary. This loan brings the total amount of the global loans to Hansabank over the last three years to EUR 120 million. The mentioned Global Loan was signed by Mr. Sauli Niinistö, the Vice-President of the EIB whose responsibilities include Sweden, Finland and the Baltic States, and Mr. Indrek Neivelt, CEO of Hansabank.
Mr. Niinistö commented on the signature saying: EIB Global Loans represent a well established tool to support SMEs and small infrastructure investments. We are delighted to further develop our excellent co-operation with Hansabank and to increase our co-operation in support of investments that play a significant role in creating jobs and developing the economy. I believe that the loan signed today will contribute to an increase of the productivity and competitive capacity of SMEs and generally contribute to economic growth and employment throughout the Baltic States.
Since 1990, the EIB has lent a total of EUR 22 billion in Central and Eastern Europe to finance projects fostering European integration, almost EUR 3 billion of this figure being provided through Global Loans. Lending so far this year to the countries of the region exceeds EUR 2.8 billion.
The prime objective of the EIB in Central and Eastern Europe is to prepare the future Member States for EU membership and to integrate them into the Single Market. The EIB has the following priorities in the future Member States:
- transport to improve the connections between the future Member States and the European Union as well as interlinking these countries, which is a precondition for successful economic integration. Upgrading and further construction of the local infrastructure network and its connection to the Trans-European Network is a major element in strengthening economic competitiveness, achieving balanced and sustainable development of these countries and re-enforcing their economic and social cohesion;
- human capital development and promotion of a knowledge-based and innovation-driven economy in line with the Lisbon Strategy. In this connection, the Bank finances projects supporting the development of R&D infrastructure, formation and training of human capital, diffusion of innovation and modernisation of telecommunication networks;
- protection and upgrading of the natural and urban environment to enable the future Member States to comply with EU standards represents another priority lending area for the EIB;
- foreign direct investment that provides capital and know-how, modern technology and management skills for economic modernisation and increased competitiveness.