Brussels, 13/02/2003 (Agence Europe) - On Thursday, the European Investment Bank (EIB) presented the press (as it does every year) with a balance sheet of its activities for the previous year. Its President, Philippe Maystadt, indicated that 2002 had been marked by the decision to noticeably increase the Bank's subscribed capital by way of a marked increase in loans to candidate countries and the launch of the Euro-Mediterranean Investment and Partnership (FEMIP). Mr Maystadt also stressed that regional development and economic and social cohesion had continued to be the number one priority of the EIB. He welcomed the fact that the bank has gone beyond its ambitious objectives for 2002 in loans to environmental projects and had highlighted the long term priority of supporting projects that would help the EU become the knowledge-based EU the most dynamic economy in the world by 2010.
In 2002, the EIB lent a total of EUR 39.6 billion (as opposed to EUR 36.8 in 2001) to projects for achieving EU policy objectives. This means that EUR 6.2 million had been allocated to third countries. Loans to candidate countries reached record figures of EUR 3.6 billion (9.2% of the total) and loans to Mediterranean partner countries EUR 1.6 billion (4.0%). In the western Balkans, the EIB supported reconstruction and development projects to the tune of EUR 425 million (1.1%). Loan operations in support of EU development policy rose to a total of EUR 523 million of which EUR 298 million for ACP countries, EUR 50 million to South Africa, EUR 90 million to Asia and EUR 85 million to Latin America.
The European Investment Fund, a branch of the EIB group, specialising in venture capital took participations worth around EUR 470 million in venture capital funds and provided a total of EUR 1.23 billion in the form of guarantees for funding SMEs. The EIB raised EUR 38 bn through the international capital markets through 219 bond issues in 14 currencies. 35% of resources (13.3 bn) in EU, 38% (14.4 bn) in USD and 16% in GBP (6.2 bn). Bond issues in Czech, polish and Hungarian currencies were also launched at a total amount of EUR 535 million.
On 31 December 2002, the EIB balance sheet reached a total of EUR 221 bn. Ongoing borrowing accounted for EUR 185 bn and loans stood at EUR 234 bn.
Philippe Maystadt explained that the decision to increase subscribed capital of the bank (which increase from EUR 100 million to EUR 150 million on 1 January 2003), was to do with the accession of the Fifteen to the strategic direction of the EIB group. He stressed that this increase the statutory lending ceiling at the banks had risen to EUR 375 bn. Capital actually paid in was increased from EUR 6 bn to 7.5 bn. The President explained that this increase of capital would allow for an overall increase in the lending activities of the bank over the 2003-08 period.
In 2002, the EIB consolidated its position as the main external source of funding for future Member States. The amount of loans strongly increased in these countries (3.6 bn as opposed to 2.7 bn in 2001). The priority was once again transport and communications infrastructure that links the different countries to each other as well as to the EU (48% of total lending). Priority also went to environmental projects especially those in the water sector (26%) in order to help candidate countries reach the Community's environmental standards. The EIB also enhanced intervention in the area of infrastructure linked to education and health (5%) and provided significant support to SMEs, particularly be way of global loans to local banks in the different countries (15%).
Mr Maystadt pointed out that 2002 had also been the year for launching the Euro-Mediterranean Investment and Partnership (FEMIP), explaining that EIB loans in this domain were due to increase gradually from EUR 1.6 bn in 2002 to EUR 2 bn every year and would reach a total of 8-10 bn by 2006.
Mr Maystadt also discussed preparations linked to the entry into force of the Cotonou Investment Facility, which has an envelope of 2.2 bn for funding operations in ACP countries over the next five years. The President stressed that in parallel to this facility, the bank would continue to invest from its own resources in ACP countries up to an amount of EUR 1.7 bn over the same five year period, with the main focus being on poverty reduction.
Philippe Maystadt also mentioned the banks' rapid reaction to the floods that occurred in central Europe last year, together with the granting of loans governed by extremely favourable conditions. Mr Maystadt indicated that the EIB was prepared to grant loans under the same conditions to clean up the Galician coast affected by the "Prestige" disaster and underlined that the first loan of EUR 150 million would be singed in the next few weeks.
As for EIB lending in 2002 regional development continued to represent the absolute priority with a total of EUR 22.9 billion in loans in current and future Member States. Within the current Fifteen, EU 12.5 billion in the form of individual loans and an amount estimated at EUR 6.8 bn in the form of global loans to SMEs and public and small-scale investment projects were allocated to schemes in assisted areas. In future Member States, the bank lent EUR 3.6 bn. Philippe Maystadt indicated that cooperation with the Commission continued to play a key role in carrying out the regional development objective and the optimisation of synergies between EIB loans and grant money from the Commission. The EIB President also welcomed the fact that the bank had largely superseded its objective of dedicating between a quarter and a third of individual loans in the EU and future Member States to environmental projects. Individual loans reached the unprecedented figure of EUR 9.3 bn in the Fifteen (an increase of 56% compared to 2001) and EUR 900, million in future Member States. By way of intermediary operations of global type loans set up with partner banks, the EIB also lent EUR 1.8 bn for small-scale environmental projects carried out in cooperation with local organisations and SMEs.
In 2002, EIB funding in support of the EU strategy aiming to help develop the knowledge-based economy, increased to EUR 3.6 bn. Loans to innovative projects covered the whole of the EU and most candidate countries.