- Additional support for small and medium-sized companies
- Comprehensive package on energy and climate change, including the automotive industry
- Additional support for Central and Eastern Europe
- Capital increase
The European Investment Bank's Board of Directors today approved the EIB's Corporate Operational Plan 2009-2011 (COP), setting out increased lending targets and other practical measures to mitigate the current financial and economic crisis in response to the request of EU Member States.
The EIB will increase its total lending volume by some 30% (EUR 15bn) in both 2009 and 2010, compared with the level of previous years. The additional global investment value expected to be leveraged in 2009 and 2010 should reach around EUR 72bn, based on a historical leverage effect of five times the Bank's financing.
Lending to small and medium-sized companies (SMEs) will rise by 50% to EUR 15bn over two years (i.e an extra EUR 2.5bn per year) and a new product line will be developed allowing risk sharing with banks. A similar and complementary approach is being developed for "mid-cap" companies for an additional EUR 1bn per year.
Additional lending within the energy and climate change package will amount to EUR 6bn per year. This includes a clean transport facility for the automotive and other transport industries, their original equipment manufacturers and component suppliers. The facility will target significant CO2 reduction through research, development and innovation expenditure, as well as tangible fixed assets in related infrastructure and production plants.
Since the financial crisis risks having a disproportionate impact on some Member States, the Bank will increase its convergence lending by a further EUR 2.5bn per year. To fulfil this objective and its reinforced SME priority, the EIB already has some EUR 5bn earmarked and awaiting utilisation to help support SMEs through the local banking sector in Central and Eastern Europe and candidate countries, and would be prepared to increase this in the next two years if necessary.
To enable the EIB to meet these increased lending targets, the Board of Directors agreed to propose to the Board of Governors that the Bank bring forward the capital increase previously envisaged for 2010. The EIB's subscribed capital will be increased by some EUR 67bn to EUR 232bn. As usual, the paid-in capital will be 5 percent of the subscribed capital. The increase in paid-in capital will be effected through a transfer from the EIB's additional reserves to its capital.
"The EIB's additional financial support will allow quick disbursements and contribute to the real economy, notably by protecting good projects and helping viable companies in these difficult times", EIB President Philippe Maystadt said. "As recommended by the European Council, this programme is temporary (for 2009-2010), targeted (on SME's and climate change) and timely (with quick implementation)."
||Additional annual EIB financing proposed (EUR bn) in each 2009 and 2010
||Additional global investment value (EUR bn) expected to be leveraged in 2009 and 2010
|SMEs and mid-caps
|Energy, climate change and infrastructure, including clean transport
Note for the editor
The European Investment Bank was created by the Treaty of Rome in 1958 as the long-term lending bank of the European Union. The task of the Bank is to contribute towards the integration, balanced development and economic and social cohesion of the EU Member States. The EIB raises substantial volumes of funds on the capital markets which it lends on favourable terms to projects furthering EU policy objectives. The EIB continuously adapts its activity to developments in EU policies.
In 2007, the European Investment Bank lent a total of EUR 47.8 billion for projects promoting the European Union's policy objectives. Finance for the EU-27 Member States represented 87% of its activities and amounted to EUR 41.4 billion.
The estimated leverage factor between EIB financing and the total value of investment ranges between 2 and 10 times, depending on the type of instrument and the average expected percentage of EIB financing.