Brussels, 08/01/2013 (Agence Europe) - On Tuesday 8 January, the European Investment Bank announced that its shareholders, the 27 EU member states, have unanimously approved a €10 billion capital increase, which will be fully paid in. The capital increase will allow Europe's long-term lending institution to provide up to €60 billion, over a 3 year period, in additional lending for economically viable projects across the European Union. The EIB capital increase was decided in June 2012 as part of the European Growth Pact.
“The unanimous decision by the Governors of the European Investment Bank to strengthen the bank's capital base and enable an additional €60 billion of increased lending demonstrates a shared desire to support investment that will create jobs and contribute to economic growth in Europe. We are committed to working with national authorities, public investors and private business to ensure effective use of the additional lending across all member states and to unlock significant private investment for projects”, said EIB President Werner Hoyer.
In early 2012 the European Council asked the European Investment Bank to examine how to increase support for growth and in June 2012 recommended that the bank's capital be strengthened to allow an increase in lending activity.
The additional capital to be paid in by each shareholder will reflect their current shareholding. The additional lending will target four priority sectors and be dedicated to supporting innovation and skills, SMEs, clean energy and modern infrastructure. The new financing will be in addition to the €50 billion regular annual lending.
The Growth Pact also included the EIB's plan to introduce “project bonds” to fund transport and energy infrastructure. A pilot phase was launched in November. The EIB has planned to provide a €230 million envelope in support of these project bonds out of the European budget. These bonds are expected to raise a total amount of €4 billion on the markets. The Growth Pact also plans to reallocate around €55 billion in unused structural funds. (LC/transl.fl)