On the occasion of its annual meeting, on 8 June in Luxembourg, the Board of Governors of the European Investment Bank (EIB) agreed to focus EIB lending activity for 2010 on those projects that are likely to have greatest impact on economic recovery and jobs. Bearing in mind their improved access to capital markets and financing, larger European corporations are not expected to make as much use of EIB finance as they did in 2009.The access of small and medium-sized enterprises (SMEs) to financing continues to be difficult, however, and will remain a priority for the EIB in 2010. EIB governors also encouraged the bank to continue its policy of meeting market gaps by increasing the ceiling for special activities to €8 billion, compared with €6.35 billion in 2009. The overall lending target for 2010 was set at €66 billion.

“With a lending target of €66 billion, the EIB is on track to achieve the additional €50 billion economic support package it pledged to deliver in 2009 and 2010,” said bank President Philippe Maystadt.

The EIB has already delivered more than €20 billion of the €30 billion in extra loans to SMEs that it agreed to provide over 2008-2011 within the context of the EU’s economic recovery plan.

CLIMATE CHANGE

In his remarks to the board, Maystadt also highlighted the EIB’s role in contributing to the post-Copenhagen climate action financing agenda. “Adoption of the Commission’s proposal for an extra €2 billion of EIB finance for climate action projects outside the EU [see Europolitics3984] would represent an important step towards meeting the Copenhagen commitments,” he specified. “Establishing a platform that would allow the EIB, the Commission, member states and other European financial institutions to combine grants with loans for climate change mitigation and adaptation projects is a proposal that we have put forward to make concrete progress in the fight against climate change.”

The EIB Board of Governors is composed of the finance ministers from the 27 EU member states, who agreed during their meeting on a general approach to the revision of the EIB’s external lending mandate, pending full agreement with the European Parliament. n

The access of small and medium-sized enterprises (SMEs) to financing continues to be difficult, and will remain a priority for the bank this year