The European Investment Bank (EIB) said that its shareholders, the 27 EU member states, approved a €10bn capital increase, which will be fully paid in. The injection will allow Europe’s long-term lending institution to provide up to €60bn over a three-year period in additional lending for economically viable projects across the EU to boost the region’s struggling economies.
“The unanimous decision by the governors of the EIB to strengthen the bank’s capital base and enable an additional €60bn of increased lending demonstrates a shared desire to support investment that will create jobs and contribute to economic growth in Europe,” said EIB president, Werner Hoyer.
“We are committed to working with national authorities, public investors and private business to ensure effective use of the additional lending across all member states and to unlock significant private investment for projects.”
In early 2012 the European Council asked the EIB to examine how to increase support for growth and in June it recommended that the bank’s capital be strengthened to allow an increase in lending activity. Unanimous support for increasing the EIB’s paid-in capital was reached after detailed examination of proposals for increased lending activity by each of the 27 shareholders.
The additional capital to be paid in by each shareholder will reflect their current shareholding. The additional lending will target four priority sectors and be dedicated to:
- Supporting innovation and skills.
- Small to medium-sized enterprises (SMEs).
- Clean energ.
- Modern infrastructure.
The new financing will be in addition to the €50bn regular annual lending.
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