Meeting within the EIB’s Board of Directors, the European Finance Ministers were called upon, on the evening of Tuesday 26 May, to finalise the terms of the European Guarantee Fund for European companies.
Based on national guarantees of 25 billion euros allowing for intervention up to 200 billion euros, this fund is one of the three safety nets approved by the European Council to deal with the socio-economic crisis caused by the Covid-19 (see EUROPE 12488/1).
The Ministers were to examine a draft agreement, drawn up the day before by their deputies, on the two elements still outstanding: the scope of the fund and the level of risk acceptable to the EIB.
According to our information, only one Czech reservation still stood in the way of a final agreement, as the differences of opinion between the frugal countries and the countries of southern Europe have been ironed out.
The future fund, which would be active until the end of 2021, could reserve more than half (65%) of its interventions for SMEs. Mid-caps and larger private companies as well as public entities such as hospitals could also benefit, under conditions, from EU Bank support.
On average, the EIB would be allowed to assume losses up to 20% of its portfolio. The ‘frugal countries’ and Germany have managed to halve this level of risk compared to the initial proposal. (Original version in French by Mathieu Bion)