Brussels, 25/02/2010 (Agence Europe) - “The EIB has proven to be a solid pillar of financial strength and stability in last year's exceptionally difficult economic environment. The Bank was committed to achieving ambitious targets in 2009. It delivered and exceeded these. We have done more, better and faster and clearly demonstrated that we can make a significant contribution to the European economy”, said Philippe Maystadt, EIB President, speaking at the bank's annual press conference on the results of the previous year. In 2009, the European Investment Bank (EIB) increased its total lending volume to €79 billion, a 37% rise from €58 billion in 2008. Last year, it reinforced its focus on small and medium sized enterprises (SMEs), the economically weaker regions across Europe (so-called convergence regions) and the energy sector in the context of combating climate change. Maystadt pointed out that all these will be priorities in 2010, although he said that this year the lending volume should be around €75 billion, as the bank expected to receive fewer requests for financing from the private sector. Faced with the credit squeeze, private companies borrowed, in 2009, a 42% share of all amounts lent by the EIB, which is far more than during previous years. The EIB president sees this as a “temporary situation”. “We hope to reduce this volume and we have taken more risks”, he added, explaining that, in the middle of economic and financial turbulence, “it was necessary to act to take the place of the commercial banks”. Following the publication of the report from the experts group chaired by Michel Camdessus on the EIB's external mandate (EUROPE 10083), Philippe Maystadt said that, in 2010, there would be a review of the way in which EIB activities must be developed outside the Union. “Short term recommendations of the Camdessus report are welcome”, he said, while showing greater reserve regarding recommendations for the post-2013 period. He said these should be closely examined. The EIB president nonetheless affirmed he shared the idea of strengthening coherence and visibility of the Bank's external action, as recommended in the report. When asked by journalists about Greece's finances, Maystadt pointed out that the EIB could not legally grant direct loans to a member state in difficulty but that it can finance investment programmes in certain countries, including Greece. Be that as it may, he added, the Greek government must put its house in order. “If the Greek plan to improve its finances is applied, and if it works, then that will help to reduce tension (…). Speculation must be eliminated”, he stressed. And, if such is not the case, the EIB president called for the statement by the heads of state or government of the European Union of 11 February 2010 to be looked at again, as “every word counts”. He pointed out that the statement says “euro area member states will take determined and coordinated action, if needed, to safeguard financial stability in the euro area as a whole”.
The top EIB priority in 2009 was to step up lending activity in favour of SMEs. In 2009, the bank lent €12.7 billion (i.e. 55% more than in 2008) to intermediary banks in the form of credit lines intended for financing small enterprises. The EIB thus reached 50,000 SMEs throughout the EU. In 2008, it had already made its “loans for SMEs” product simpler and more transparent in order to facilitate lending to SMEs through its partner banks. In 2009, the new SME policy of the EIB was implemented on a large scale and the EIB continued the rapid growth, registering a 55% increase in signatures of intermediated loans for SMEs, which followed a 43% rise the year before. Over the period 2008-2009, the EIB signed €20.8 billion in loans with intermediary banks, which means it is now well on its way to delivering on its target of lending €30 billion to SMEs between 2008-2011, a target set in the European economic recovery plan that was adopted by heads of state and government in December 2008.
The EIB and partner banks used the flexible “loans for SMEs” product in 16 of the 27 member states in 2008 and in a further 9 in 2009. This allowed cooperation with a large number of new counterparts to ensure widespread support for SMEs. In addition to channelling EIB funds to SMEs, partner financial intermediaries commit to matching each euro of EIB lending by at least another euro from their own resources.
Second priority, lending in support of convergence, which is one of the main sections of the European recovery plan, increased by 36% in 2009. The volume of lending granted under convergence policy reached €29 billion in total, i.e. 37% of all EIB loans in 2009. This amount represents a 36% increase compared to convergence lending in 2008, which stood at €21 billion. Lending was well-balanced between the EU15 and EU12 new member states, with the latter receiving an aggregate amount of €12.8 billion (compared to €8.1 billion in 2008), i.e. 44% of total convergence lending. In absolute terms, the convergence regions of the EU15 received the lion's share of the lending whereas, in per capita terms, the new member states were in the lead. With €4.8 billion, Spain is the top beneficiary of convergence lending in absolute terms, followed by Poland with €4.6 billion. Estonia leads in per capital terms, followed by Portugal, Lithuania and Slovenia.
The EIB has also been more closely involved in co-financing with structural funds. In convergence regions, structural programme loans (SPL) amounted to over €3.1 billion in 2009. As far as European territorial cooperation is concerned, the EIB played a key role in the design, launch and implementation of the EU Baltic Sea Strategy (BSS) and contributed to finalising the new macro-regional strategy developed by the Commission at the request of the European Council.
In 2009, the EIB lent €16.9 billion for climate change initiatives, which represents growth of 73% compared to the €9.8 billion made available in 2008 for climate change. The increased support focuses on sustainable transport projects (€5.5 billion), renewable energies (€4.2 billion), energy efficiency (€1.5 billion) and research and development (€4.7 billion). Confronting the challenge of climate change, the EIB has coordinated action across six key areas: (1) reinforcing alignment of the bank's corporate objectives and standards in line with EU climate change policy; (2) emphasising reduction of greenhouse gas emissions through improved energy efficiency; (3) providing technical assistance for renewable energy and energy efficiency; (4) financing development and early commercialisation of cost-effective low-carbon technologies; (5) increasing climate change adaptation lending; and (6) mobilising and leveraging private sector finance for low-carbon growth in developing countries and support for post-2012 carbon markets. Also, the EIB has played a leading role in stimulating and demonstrating climate change best practice in Copenhagen.
Although a very large part of its funding in 2009 (over €70 billion or 89% of total lending volume) is within EU member states, the EIB has also continued to provide major financial support for third countries. The largest volume of lending was granted to candidate and potential candidate countries, especially the Western Balkans, and to neighbourhood countries and the Union's Mediterranean partners. Financing has also been provided for Central Asian countries as well as ACP countries (Africa, Caribbean and Pacific linked to the EU by the Cotonou Agreement). Finally, the EIB has considerably enhanced its partnership with Latin America (Argentina, Colombia, Nicaragua and Panama) as well as with Asia (China, India, Pakistan and Vietnam).
On the subject of the EIB's external lending mandate, an independent assessment was carried out by a steering committee of “wise persons”, chaired by Michel Camdessus, the former director general of the International Monetary Fund. The steering committee recently presented its final report and its recommendations to the European Parliament, Council, Commission and EIB and published its report on 24 February 2010 (EUROPE 10083). After receiving the independent evaluation conducted by the wise persons committee, the European Commission will have until 30 April 2010 to submit to the European Parliament and Council its possible proposals for amending the EIB external mandate. Following the European Court of Justice ruling in Case C-155/074, the European Parliament will have codecision powers alongside the Council on revision of the EIB external mandate.
Finally, in a press release, the EIB underlines that it remains very sound financially, increasing total lending to as much as €79 billion in 2009 on capital markets, on the basis of its excellent credit situation and its effective strategy for resource collection despite a very difficult economic context. Further information and figures on the EIB's activity in 2009 are available on: http: //http://www.bei.org/about/events/annual-press-confrence-2010.htm . (O.L./transl.jl)