European Investment Bank Approves €9.4bn in New Loans

A whopping €9.4bn for the financing of 56 projects across Europe and around the world was approved by the board of directors of the European Investment Bank, representing the bank’s 28 EU member state shareholders, as well as the European Commission, on July 19.

According to a press release issued by the bank, more than €2.8bn will be used to finance new loans for 19 projects backed by the EU budget guarantee under the European Fund for Strategic Investments (EFSI), as well as use of the guarantee for two projects already approved by the board. The EIB also agreed to provide more than €750m for investment in eight projects outside Europe.

"In a difficult context of global turmoil and uncertainty in Europe, the EU’s Bank continues to provide targeted financing for real world, real economy projects,” said European Investment Bank President Werner Hoyer. "Almost daily we are called to respond to challenging, sometimes horrible events that test our resolve to promote and abide by our common values. It is important that we react promptly and wisely. It is also important that we maintain perspective and remain committed to long term investment. We need it to bring durable adjustments and adaptations of economies both within Europe and across the world, making them more resilient and bringing people hope for their future and that of the planet. That is what the EIB is about: delivering for the real economy and for the medium term.”

Under the Investment Plan, the EIB will support investment to upgrade hospital facilities in Poland, implement heat and power plants in paper mills in France and the UK and smart metres in the UK. New energy, urban development and tourism investment in French overseas territories will also be financed by the EIB under the EFSI initiative.

What is more, SMEs will benefit from new lending programmes with local bank and partner institutions in Germany, Italy, Spain, Slovenia, Poland, the Netherlands, Romania and Tunisia. This includes support for dedicated SME lending for agricultural investment in France, Germany and Romania, and for social impact in the Netherlands.

The EIB also approved more than €4bn of new financing for strategic infrastructure, including social housing in Germany and the UK, upgrading road links in northern Poland and northern Brazil, small scale infrastructure projects by French local authorities and in the Lithuanian capital Vilnius, and expanding 4G mobile communications in Germany. The board also agreed to support water investment in Italy, the Netherlands, the UK and Tunisia.

More than €1.1bn of new support for investment in social and affordable housing was approved, including financing for social housing and temporary accommodation and reception centres for refugees across Germany through projects in Nord Rhine Westphalia, Munich and Brandenburg. New EIB lending will also support social housing in the Polish cities of Radom and Poznan, and by one of the largest housing associations in the UK.

In the area of sustainable and renewable energy, the EIB board agreed to finance the extension of the Olkaria 1 Geothermal plant and rural electrification in Kenya. Financing for expansion of electricity distribution in the northern state of Bahia in Brazil was also approved.