Luxembourg, 07/02/2002 (Agence Europe) - By lending 320 million euro in all in the western Balkans in 2001, the European Investment Bank (EIB) increased and diversified its funding in the region. Having essentially backed the transport sector since the beginning of its interventions in the western Balkans in 1999 in the framework of the Stability Pact, the Bank diversified its loans in the region in 2001 to provide increased support for the private sector. This development may be explained both by the success of urgent reconstruction efforts and by the beginning of a situation of stabilisation and economic development in the region. In 2001, the EIB signed its first loan in the Federal Republic of Yugoslavia. The same year, it devoted 70% of all its loans in the western Balkans to basic infrastructures, which are one of the key elements for development in the region. Out of the same total, 21% of its operations benefited the private sector, with four new global loans in FYROM and Croatia in favour of small and medium-sized investments by SMEs in the private sector and local authorities. Finally, the remaining 9% went to the energy sector.