EIB and Kreditanstalt für Wiederaufbau (KfW) meet in Luxembourg to discuss stronger partnership
31 May 2018
A high level KfW delegation led by Chief Executive Officer, Dr. Günther Bräunig, and including four of the five KfW Board members, visited the European Investment Bank yesterday to hold talks with EIB President Werner Hoyer, Vice-President Ambroise Fayolle and senior EIB representatives.
Discussions were held on numerous joint initiatives including those on Venture debt financing, the Mutual Reliance Initiative and the Connecting Europe Broadband Fund (CEBF). CEBF, which is expected to be signed shortly, will support largely Greenfield broadband projects that are small in size and have a higher risk across the EU, as well as Iceland and Norway.
Participants also discussed how to further strategic cooperation between the two organisations both inside and outside the Union, and agreed to hold regular high level meetings during the calendar year to strengthen their partnership.
In the spirit of increased cooperation, the leaders of both organisations have agreed to prepare a joint flagship proposal ahead of the 2018 World Bank/IMF Meeting in Bali in Autumn 2018.
This was the second high level meeting since Dr Bräunig took over as CEO of KfW on the 1st of January 2018. The first took place in Frankfurt at the end of January.
KfW will expand its range of promotional products in the fields of innovation and digitalisation. The new KfW Loan for Growth will support the innovation and digitalisation projects of larger medium-sized enterprises. It will finance innovative projects to open up new markets or customer groups or to intensify significantly the digitalisation of businesses. The new KfW programme is part of the German government's Tech Growth Fund initiative, which aims to support companies in their growth phase by expanding the range of state financing instruments available.
The European Commission and the EIB announce today their plans to launch a fund for broadband infrastructure – the Connecting Europe Broadband Fund. This fund, which will lead to an investment platform combining private and public commitments, is announced together with three National Promotional Banks and Institutions (NPBIs) that aim to participate in the initiative as anchor investors: KfW Bankengruppe from Germany, Cassa Depositi e Prestiti from Italy and Caisse des dépôts et consignations from France. The Connecting Europe Broadband Fund will invest in broadband network infrastructure across underserved areas of Europe.
How can National Development Banks (NDBs) and Multilateral Development Banks (MDBs) mobilise more private sector funding to reach the Sustainable Development Goals? According to EIB Vice-President Ambroise Fayolle, “We have to find more innovative ways of working together, and enhance trust among ourselves in the appraisal process.”