The European Investment Bank (EIB) lends EUR 50 million to BNP Paribas SA Branch in Poland to support small and medium scale projects promoted usually by public or private promoters, in the fields of environmental protection, rational use of energy, diversification of energy sources and improvements in environmental infrastructure.
The EIB joins its forces with the BNP Paribas SA Branch in Poland, a bank with a profound knowledge of the Polish market and an extensive network of branches in the country. In addition, regional and municipal authorities, to whom the loan is devoted, are customers of the bank and they will profit from a better access to long term finance provided by the loan.
The current EIB loan is the first of its kind granted to the BNP Paribas SA Branch in Poland. As the EIB funds will finance environmental projects the loan will contribute to fulfil the commitment of Poland to apply EU legislation in the area of the environmental protection.
EIB loans to partner banks have been developed as a successful tool for providing long-term funding for financing smaller projects with total costs from EUR 40,000 to EUR 25 million. They represent credit lines to financial intermediaries that on-lend EIB funds under their own management, at their own risk and own conditions.
The prime objective of the EIB, the European Union's long term financing institution, is to contribute towards the integration, balanced development and economic and social cohesion of the Member States by financing sound investment. Since 1990, the EIB has provided loans in Poland amounting to some EUR 13 billion. The Bank has provided about EUR 2.1 billion for implementation of smaller projects of SMEs and municipalities in Poland. This represents some 15% of the overall EIB lending in the country.
The major share of the total EIB lending in Poland - approximately 40% - has been focused on the transport sector, covering projects such as the extension of the Polish motorway network, the modernisation of the LOT Regional Air Transport Fleet, and the upgrading of municipal transport infrastructure in major Polish cities.