Luxembourg, 03/01/2007 (Agence Europe) - Following the Government of Israel's ratification, on 7 December 2006, of the EIB-Israel Framework Agreement, the European Union's long-term bank for project finance has resumed its operations in Israel after 11 years. Two loan contracts totalling €275 million were signed end December to finance environmental projects and SME investments.
The first EIB loan agreement of €200 million was signed with the Ministry of Finance and will finance protection of the environment through municipal wastewater schemes such as the construction of new wastewater treatment plants, wastewater recycling projects and related schemes. Beneficiaries will be municipalities or municipal companies, with a focus on smaller urban and rural centres. In total, EIB lending will benefit some 400 projects with a focus on investments in areas populated by low income groups. Financing of the investments falls within the EIB's objective to help protect and improve the overall environment and quality of life in the Mediterranean region. The project promoter is the Sewage Infrastructure Development Administration (Ministry of National Infrastructure).
The EIB's 10-year financing facility for SMEs amounts to €75 million. It will support Hapoalim Bank in providing attractive term lending products for Israeli SMEs in industry, services, tourism, agro-food, health and education. The loan is in line with one of the key priorities of FEMIP (Facility for Euro-Mediterranean Investment and Partnership), which aims at strengthening SMEs in the Mediterranean Partner Countries. (ol)