4/30/10 1 european investment bank
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11/04/23 1European Investment Bank
EUROPEAN INVESTMENT BANK
Financing Investments and Growth in Difficult Times
11/04/23 2European Investment Bank
Breakdown of the EIB’s capital
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The European Investment Bank (EIB)Long-term Finance Promoting European Objectives
European Union’s long-term lending bank set up in 1958 by the Treaty of Rome.
Shareholders: 27 EU Member States
GovernanceBoard of Governors – EU Finance Ministers
Board of Directors - Member States & European Commission
Management Committee –EIB’s executive body
Audit Committee – independent, non-resident
Subsidiary: EIF (European Investment Fund)
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The European Investment Bank (EIB)European Priority Objectives
Within the Union:Cohesion and convergence
Small and medium enterprises (SMEs)
Environmental sustainability
Innovation 2010 Initiative (i2i)
Trans-European Networks (TENs)
Sustainable, competitive and secure energy
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The European Investment Bank (EIB)European Priority Objectives
Outside the Union:Private sector development
Infrastructure development
Security of energy supply
Environmental sustainability
Support for EU presence in Asia and Latin America via Foreign Direct Investment (FDI)
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EIB Capital Increases and Outstanding Loans
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Value Added
Value-Added of the Bank’s lending activities:
Support for EU priority objectives
Project quality and soundness
Financial benefits of EIB funds
Technical assistance
Project assessment
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The European Investment Fund (EIF)Venture capital & SME guarantees
Established in 1994
Owned by: EIB
European Commission
Other European financial institutions
Resources: Own funds – subscribed capital
EU programmes
Trust operations (EIB, German Government)
2007 figures (signatures):Venture capital funds: EUR 521m
Guarantee operations: EUR 1397m
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EIB Group Response to Financial Crisis
Fast Track Measuressubject to approval of EIB shareholders
Non-financial Measures
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EIB Group Response to Financial Crisis
Additional annual EIB lending: € 15 bn
Focus on the following priority sectors
SME and Mid-Caps
Energy, Climate Change and Infrastructure
Convergence Lending
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SME and Mid-Caps
EIB:
Increase by 50%
Additional € 2,5 bn p.a. in 2008/2009
Total lending up to € 30 bn for 2008-2011
New Mid-Cap Facility of € 1 bn p.a.
EIF:
Additional € 1 bn mezzanine mandate
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Energy, Climate Change and Infrastructure
Energy, Climate Change
(i) energy efficiency, renewables
(ii) environmental improvement, fossil fuels, CCS
(iii) Clean Transport Facility
Infrastructure
(iv) TENs and related infrastructure
€ 2,3 bn
€ 2,3 bn
€ 2 bn
€ 2,4 bn
_______
€ 9 bn p.a.
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Convergence Lending
Increase of further € 2,5 bn p.a.
Focus on EU-12
Forecast 2008: € 17 bn
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Disbursement data and forecastEU + Pre-Accession Countries
0
10
20
30
40
50
60
2007 2008 2009 2010 2011
targetachieved revised target
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EIB activities in the Western Balkans
0
100
200
300
400
500
600
EUR M
2007 2008 2009 2010 2011
Signatures
Disbursements
(excluding Croatia)(excluding Croatia)
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EIB Activities in Candidate CountriesCroatia / Turkey / FYROM
0
0.5
1
1.5
2
2.5
3
2007 2008 2009 2010 2011
SignaturesDisbursements
Forecast signatures 2008: € 3,5 bn
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Non-financial measures
Make (infrastructure-) projects happen
Technical Assistance
JASPERSJEREMIEJESSICAJASMINE
1.
2.
3.
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Make projects happen
if needed: restructuring with stronger public part in all cooperations between public & private sector
if needed: take a higher share in consortia
if needed: move out of pari-passu to exclusively long term financing
if needed: (as far as possible) take more risk
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Technical Assistance
Increase of Technical Assistance
- project preparation
- project standardisation
- project launching (tendering, …)
- project implementation
- project monitoring and reporting
EPECEuropean PPP Expertise Centre
Western Balkans Investment Framework
Initiative of the European Commission, EIB together with EBRD and CEB
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What is JASPERS?
‘Joint Assistance to Support Projects in European Regions’
Objective: increasing the capacity of the beneficiary countries to make the best use of EU Structural Grant funding
A technical assistance partnership to prepare major projects between DG REGIO-funded (32 professionals + 10 support staff), EIB (16 professionals), EBRD (5-8 professionals) and KfW (2 professionals)
Value added: draws on past experience and expertise of the EIB and the EBRD
JASPERS is managed within the EIB but separated from its lending activities
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EU Structural/Regional Funds
Focus on 12 ‘new’ Member States
Main Priorities:- Large projects in transport and environment sectors eligible for Cohesion Fund and ERDF
- Transport and other sectors € 50 M > capital cost
- Environment € 25 M > capital cost
Programming period 2007-13
Cohesion instruments: €350bn EU grants
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JEREMIE stands for “Joint European Resources for Small and Medium-sized Enterprises
Initiative which was developed by the European Commission and EIF
EU Member States implement the JEREMIE initiative by establishing a Holding Fund funded through their Structural Funds. The Holding Fund can be managed either by the EIF or by other financial institutions
What is JEREMIE?
2/15
National/ Regional Evaluation completed
National/ Regional Evaluation under way
No request
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Need to move away from “grant dependency”
Enhance Financial Engineering and SME Access to Finance within Cohesion Policy: Lisbon Strategy
Simplified procedures, though the Holding Fund system
… and revolving nature
Delegation to a neutral expert of selection of intermediaries, monitoring, reporting to Commission
Flexibility in the selection of instruments through holding fund concept: long term approach (2008-2015)
Leverage possibilities with other financial institutions, notably EIB
JEREMIE is a service provided to Member States (if option)
EIF invests in the name and on behalf of Member States/Regions
Why JEREMIE?Joint European Resources for Micro to Medium Enterprises
2/15
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WHAT IS JESSICA?
Joint European Support for Sustainable Investment in City Areas
Initiative of the European Commission (DG REGIO) launched at end of 2005, and supported by EIB, to strengthen the urban dimension in cohesion policy
Partnership with CEB (Council of Europe Development Bank
Applying “financial engineering” techniques to EU Structural Funds
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WHY JESSICA?
To make Structural Fund support more efficient and effective by using “non-grant” financial instruments, thus creating stronger incentives for successful project implementation.
To mobilise additional financial resources and expertise for PPPs and other urban development projects with a focus on sustainability/recyclability.
To utilise financial and managerial expertise from international financial institutions such as EIB.
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JASMINE
JASMINE stands for “Joint Action to support microfinance institutions in Europe”Pilot initiative which has been developed by the European Commission (EC), the European Investment Bank (EIB) and the European Investment Fund (EIF).To provide effective support for the promotion of microcredit in the European Union, theWith a total budget of EUR 50m, JASMINE is financed by the EIB and potential partner banks, with the additional financial support from the European Commission. JASMINE is managed by the EIF who will provide MFIs with sources of funding such as loans or equity,as well as technical assistance.
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For more information…
http://www.eib.org/