European Commission and EIB announce more flexible guarantee of €5 billion to boost global investments
On 30 June, the European Commission and the European Investment Bank (EIB) announced a new type of guarantee agreement that will provide up to €5 billion to de-risk investments and expand EIB operations outside the European Union. This guarantee has the potential to unlock up to €10 billion in funding for critical projects in clean energy, green infrastructure and access to finance for Small and Medium Enterprises (SMEs) in partner countries.
This new guarantee is designed to support an increased the number of companies – companies with a state participation or public organisations – that operate at local or regional levels in partner countries outside the EU. The novelty about today’s new guarantee is that it can also apply to entities that borrow money from financial markets on their own terms – without state backing, whereas the previous guarantees used to support only state-backed projects. With today’s new type of guarantee agreement, it will be more flexible and faster to back up investments.
Ultimately, the new guarantee will advance Global Gateway investments by financing projects of public interest that are considered too risky for traditional lenders, while ensuring affordable borrowing costs for partner countries.
Among other projects, the guarantee will help finance telecommunication and energy infrastructure projects and support municipalities in the EU’s enlargement and Eastern Neighbourhood regions, contributing to the EU’s accession priorities. At the same time, the guarantee will enable for instance the development of the Transcaspian Corridor in Central Asia.
Find out more
MOST READ
[popular_posts columns_xl=”4″ columns_l=”4″ columns_m=”3″]
