Brussels, 02/02/2010 (Agence Europe) - On Friday 29 January, Bank Austria and the European Investment Bank (EIB) signed a risk sharing agreement, under which the EIB will in future no longer act purely as a provider of funding to Bank Austria but also, under a pilot project in association with the bank, grant low-interest loans to businesses. After a detailed examination of its lending procedures, Bank Austria was selected as the EIB's first partner in Austria. The total volume of EIB co-financing operations is currently limited to €75 million, an amount that will be matched by Bank Austria. Under the agreement both partners will share the credit risk fifty-fifty. The new low-interest loans from Bank Austria and the EIB are intended specifically for small businesses but also for medium-sized firms with up to 3,000 employees. Technology and environmental projects in particular, with a total value of up to €25 million, will be financed. The loans will run for between 3 and 12 years. If the pilot project is a success, further tranches will be considered. (O.L./transl.fl)