Crédit Agricole and the European Investment Bank (EIB) today signed two credit lines amounting to EUR 300 million in support of investment by local authorities and small and medium-sized enterprises (SMEs) to finance their development.
For the first time in France, in partnership with Crédit Agricole, the EIB is granting a credit line of EUR 200 million for investments by local authorities in the water and sanitation sectors. As regards the private sector, the EIB is opening a EUR 100 million credit line for SMEs as part of the European Council’s plans to turn the economy around. This facility strengthens the Crédit Agricole group’s position as the leading financial partner for French businesses.
The finance contracts were signed by Mr Philippe de FONTAINE VIVE, Vice-President of the European Investment Bank, and Mr Jean-Yves HOCHER, Deputy Chief Executive Officer of Crédit Agricole SA, with the following specific objectives:
- To enable local authorities to improve their water and sanitation management on advantageous terms
European and French water legislation requires considerable investment to improve the quality of drinking water, sewage treatment and the conditions for access to water for all. For the first time in France, the EIB is providing a credit line designed exclusively for public investment in the water sector, in partnership with Crédit Agricole. In this way, the municipalities will be able to obtain loans from Crédit Agricole on the advantageous terms offered by the EIB in order, for instance, to improve the quality of water supply networks and construct or renovate sewage treatment plants and pumping stations.
- To support investment by small businesses under the EIB’s SME support plan launched at the request of the European Council
At the request of the Finance Ministers of the 27 EU Member States at the Council meetings in September and December 2008, the European Investment Bank has launched a support plan for European SMEs. Its objective is to provide over EUR 30 billion in loans to small businesses via commercial banks by 2011. The EIB is today advancing a credit line of EUR 100 million, which will enable French companies with fewer than 250 employees to take out loans with Crédit Agricole on the advantageous terms offered by the EIB in support of tangible and intangible investments required for their development.
About the European Investment Bank:
The EIB is the European Union’s bank. Its remit is to provide mostly long-term loans in support of viable private or public capital investment projects that meet the EU’s integration, cohesion and development objectives, broken down into six priority policies: economic and social cohesion; environmental protection; research and innovation; support for SMEs; trans-European transport networks; and the promotion of secure, competitive and sustainable energy. In 2007, the EIB provided finance totalling EUR 41 billion in the European Union.