The European Investment Bank (EIB) is lending SKK 700 million (approx. EUR 21 million) to the Bratislava Self-Governing Region for co-financing projects focused on the upgrading of the region’s infrastructure.
The loan is structured as a framework operation under which the Bank will finance a number of priority investments of the Bratislava Self-Governing Region, mainly in the sectors of education, culture, social care and transport.
Sub-projects will be selected by the Region and assessed by the Bank so as to ensure the financing of high quality projects that will effectively promote the development of the region. During the preparation phase, the Bank was in particular informed of and looked into several concrete investments, such as the reconstruction of Grosslingova grammar school and the Conservatoire building at Konventna Street. If approved by the regional assembly, these sub-projects, which are urgently needed, could be immediately financed from this loan.
Based on the Region’s current sound financial situation and its favourable outlook, the loan is being provided without additional security. It constitutes a flexible credit line under which the Region may draw funds over the next four years in accordance with its needs. Bratislava Region is regarded by the Bank in the same way as any other local authority in the European Union. Based on the Bank’s assessment of the Region’s financial standing, Bratislava has access to similar terms and conditions as its peers, for instance in Italy, Spain or the Czech Republic.
Bratislava is the third Slovak Self-Governing Region to receive an EIB loan. In 2006, the EIB granted similar framework loans for financing mid-term investment programmes to the Self-Governing Regions of Prešov (EUR 39 million) and Košice (EUR 42 million), both located in the eastern part of Slovakia.
EIB Vice-President Marta Gajęcka commented: “The EIB facilitates regional development in Slovakia by providing eligible sub-sovereign entities with direct access to its favourable long-term funds as well as by lending indirectly through its partners in the local banking community. The improved availability of long-term finance helps to implement important investment projects that have the potential to enhance regional competitiveness and increase the quality of life of Slovak citizens”.
The EIB, the European Union’s long-term financing institution, finances economically viable investment projects that contribute towards the integration, balanced development and economic and social cohesion of the EU Member States. Since 1990 the EIB’s lending in Slovakia has reached some EUR 2.2 billion.
The EIB is regularly awarded the best possible rating (“AAA”) by the leading rating agencies. As a result, the Bank can raise funds on the world’s financial markets on very favourable terms. The EIB is a non-profit-oriented institution and passes on these favourable terms to its customers.