Brussels, 07/10/2009 (Agence Europe) - The European Investment Bank (EIB) has just launched a lending facility via other financial institutions for small and medium-sized enterprises (SMEs) in the EU's eastern neighbours.
Until now, the EIB has been able to offer its SME loans product only to banks within the European Union, Western Balkans and pre-accession countries. Its decision to expand geographic coverage follows a request made at the EU's Eastern Partnership summit held in Prague in May. EIB intervention in the Eastern Partnership countries (Armenia, Azerbaijan, Belarus, Georgia, Republic of Moldova and Ukraine) has so far been limited to the transport, energy, telecommunications and environmental infrastructure sectors. The conclusions of the Eastern Partnership summit invited the EIB, the European Bank for Reconstruction and Development (EBRD) and other international financial institutions operating in the region to establish an appropriate joint small and medium-sized enterprise facility. Under a mandate provided by the European Parliament and Council of Ministers, the EIB is able to undertake activities in all countries except Belarus. The mandate makes available a total of €3.7 billion euro for lending in the period 2007-13. The new facility will enable EIB, via partner banks in the region, to support investments by SMEs and energy and environmental projects costing up to €25 million. The EIB is already in talks with a number of state-owned development banks in the region as well as EU banks with subsidiaries in the region with a view to concluding the first loan agreements. (O.L./transl.rt)