Brussels, 17/12/2008 (Agence Europe) - In response to the request made by EU member states, the Board of Directors of the European Investment Bank (EIB) approved, on Tuesday 16 December, the EIB's Corporate Operational Plan 2009-2011, setting out increasing lending targets and other practical measures to mitigate the current financial and economic crisis. “The EIB's additional financial support will allow quick disbursements and contribute to the real economy, notably by protecting good projects and helping viable companies in these difficult times”, said Philippe Maystadt, EIB President. He added: “As recommended by the European Council, this programme is temporary (for 2009-2010), targeted and timely”.
The EIB will increase its total lending volume by some 30% (€15 billion) in both 2009 and 2010 compared with the level of previous years. The additional global investment value expected to be leveraged in 2009 and 2010 should reach around €72 billion, “based on a historical leverage effect of five times the Bank's financing”.
Lending to small and medium-sized companies (SMEs) will rise by 50% to €15 billion over two years (i.e. an extra €2.5 billion per year) and a new product line will be developed allowing risk sharing with banks. A similar and complementary approach is being developed for “mid-cap” companies for an additional €1 billion per year.
Additional lending within the energy and climate change package will amount to €6 billion per year. This includes a clean transport facility for the automotive and other transport industries, their original equipment manufacturers and component suppliers. The facility will target significant CO2 reduction through research, development and innovation expenditure, as well as tangible fixed assets in related infrastructure and production plants.
Since the financial crisis risks having a disproportionate impact on some member states, the Bank will increase its convergence lending by a further €2.5 billion per year. To fulfil this objective and its reinforced SME priority, the EIB already has some €5 billion earmarked and awaiting utilisation to help support SMEs through the local banking sector in Central and Eastern Europe and candidate counties, and would be prepared to increase this in the next two years if necessary.
To enable the EIB to meet these increased lending targets, the Board of Directors has agreed to propose to the Board of Governors that the Bank bring forward the capital increase previously envisaged for 2010. The EIB's subscribed capital will be increased by some €67 billion to €232 billion. As usual, the paid-in capital will be 5% of the subscribed capital. The increase in paid-in capital will be carried out through a transfer from the EIB's additional reserves to its capital. (O.L./transl.jl)