European Investment Bank EIB Group Europe Enlargement Countries

Course summary European Investment Bank (EIB):

The European Investment Fund (EIF) and EIB. African, Caribbean Pacific (ACP), Asia Latin America (ALA).

The European Investment Bank (EIB) is the European Union's financing institution. The EIB's role is to provide long-term finance in support of investment projects. In 2010, some 88% of the total EIB financing of EUR 72 billion went to projects in the EU. The EIB is the largest international non-sovereign lender and borrower

Outside the EU, the EIB is active in over 150 countries (the pre-accession countries of South-East Europe, the Mediterranean partner countries, the African, Caribbean and Pacific countries, Asia and Latin America, Central Asia, Russia and other neighbours to the East).

The European Investment Fund (EIF) was set up in 1994 to help small businesses. Its majority shareholder is the European Investment Bank, with which it forms the ‘EIB Group’. The EIF provides venture capital for small firms (SMEs), particularly new firms and technology-oriented businesses. It also provides guarantees to financial institutions (such as banks) to cover their loans to SMEs.

In the period 2007-2013, the EIB provides finances for the countries in the enlargement region:
- Candidate countries: Croatia, Turkey, Iceland, The Former Yugoslav Republic of Macedonia (FYROM).
- Potential candidate countries: The Western Balkans

The EIB supports the EU Neighbourhood Policy in the Eastern Partner Countries by financing projects of significant EU interest.

The current EUR 3.7bn mandate runs from 2007 to 2013 and covers Russia, Ukraine, Moldova, Armenia, Azerbaijan, Georgia, and subject to future Council and European Parliament Agreement, Belarus.

Example of the course European Investment Bank (EIB):

The EIB, the EU’s house bank, has been an active development partner of the ACP (African, Caribbean and Pacific) countries and OCT (Overseas Countries and Territories ) since 1963 and 1968 respectively.

Under the current mandate (ALA IV - Asia and Latin America), covering the period the 2007-2013, the EIB is authorised to lend up to EUR 3.8 billion for financing operations supporting the EU cooperation strategies in these regions and complementing other EU development and cooperation programmes and instruments in these regions.

The countries currently eligible for EIB financing under the ALA IV mandate are:
- Asia: Brunei, Indonesia, Laos, Malaysia, Philippines, Singapore, Thailand, Vietnam - ASEAN Group Bangladesh, China, India, Mongolia, Nepal, Pakistan, South Korea, Sri Lanka, Yemen
- Latin America: Argentina, Bolivia, Brazil, Chile, Colombia, Costa Rica, Ecuador, El Salvador, Guatemala, Honduras, Mexico, Nicaragua, Panama, Paraguay, Peru, Uruguay, Venezuela.

The EIB received political approval from the Council of EU Ministers to become active in Central Asia (Kazakhstan, Kyrgyzstan, Tajikistan, Turkmenistan and Uzbekistan) in late 2008.

In line with the European Neighbourhood policy and the Union for the Mediterranean, FEMIP (Facility for Euro-Mediterranean Investment and Partnership) aims to help the Mediterranean partner countries meet the challenges of economic and social modernisation and regional integration.

Topic: Globalization and regionalization