Brussels, 04/03/2008 (Agence Europe) - In 2007, the European Investment Bank (EIB) increased its funding in the nine southern Mediterranean rim countries, including Syria, which has yet to sign an association agreement with the EU. Total financing rose from €1.2 billion in 2006 to €1.4 billion last year. 2007 was one of the best periods for the Bank, said its Vice President Philippe de Fontaine Vive. The increase coincided with a rise in loans to the private sector (68% in 2007, from 30% in 2006). These loans were granted by the FEMIP, the EIB's EuroMediterranean Partnership and Investment Facility, mandated by the European Council to devote €8.7 billion to Mediterranean cooperation over the period from 2007 to 2013. Since it was set up in 2002, the FEMIP has invested over €7 billion in the countries of the region. More than 1600 small companies have benefited through local banks. The EIB has gradually refined this instrument. The most significant measure was the creation of a trust fund. The offer of loan guarantees through this fund allows the EIB to be the catalyst in the provision of private funding. Despite what may be believed, there is no shortage of money, said Fontaine Vive, stating that there was strong liquidity. The financial markets of the countries of the region remain disconnected from international markets. In this situation, it has been decided to extend the scope of the FEMIP to microfinancing. A conference on microfinancing will be held in Tunis on 5 May. (F.B.)