The EIB is signing an agreement with Côte d'Ivoire to reduce its level of debt to the Bank within the framework of the Heavily Indebted Poor Countries (HIPC) initiative.

The debt reduction reconfirms the EIB’s commitment to sustainable economic development and poverty reduction in Africa. The agreement will help this West African country to reduce the burden of its debt and facilitate investment in projects which improve the quality of life for its inhabitants.

The agreements were signed at the EIB Headquarters in Luxembourg by Plutarchos Sakellaris, the EIB Vice President responsible for operations in Africa, in the presence of the Côte d'Ivoire Minister of Economy and Finance, Koffi Charles Diby.

The agreement will have three important benefits for the West African republic. Firstly, the EIB has reduced the country’s overall debt owed to the Bank, providing relief for Côte d'Ivoire and illustrating the EIB’s ongoing participation in the HIPC initiative. To date, the EIB has committed almost EUR 100 million globally to all ACP countries to the initiative.

Secondly, the Bank has agreed that outstanding debt repayments will be suspended until 2012 to further encourage economic and financial development in the highly indebted countries before they have to fulfil their debt obligations.

Finally, this move will allow the EIB to move forward in its relations with Côte d'Ivoire, recommencing lending operations after over 10 years of inactivity. The EIB will focus its activity in Côte d'Ivoire on providing loans and technical assistance for viable projects promoting growth of the private and financial sectors, as well as key infrastructure which allows for significant improvements in living conditions.

Background Notes:

EIB Activity in Africa, Caribbean and Pacific

The European Investment Bank (EIB) is instrumental in implementing the EU's development and economic cooperation policy in countries outside the Union. The EIB has been a development partner in many African, Caribbean and Pacific (ACP) countries since 1963 through a series of lending mandates from the European Council. The current mandate is based on the Cotonou Agreement of June 2000.

EIB loans in the ACP regions support the alleviation of poverty and the development of sustainable economic growth. The Bank lends from two sources - EIB own resources and the Investment Facility, a revolving fund financed by the EU Member States through the European Development Fund.

EIB lending activity in Côte d'Ivoire

The EIB made its first loan to Côte d'Ivoire in 1965, since which time it has committed over EUR 350 million in loans to support industry, infrastructure, services and the private sector in the country.