European Commission and EIB Announce New Guarantee Agreement to Support Investments in Partner Countries

The European Commission and the European Investment Bank (EIB) have announced a new guarantee agreement that will provide up to EUR5 billion to de-risk investments and expand EIB operations outside the European Union (EU). This agreement has the potential to unlock up to EUR10 billion in funding for critical projects in clean energy, green infrastructure, and access to finance for Small and Medium Enterprises (SMEs) in partner countries. The guarantee will support investments in various sectors, including energy, hard infrastructure, economic resilience, and SMEs in the North of Africa and the Middle East. This new agreement also aims to support entities with state participation or public organisations operating at local or regional levels in partner countries.

Key Takeaways:

• The new guarantee agreement will provide up to EUR5 billion to de-risk investments and expand EIB operations outside the EU.
• The agreement has the potential to unlock up to EUR10 billion in funding for critical projects in clean energy, green infrastructure, and access to finance for SMEs in partner countries.
• The guarantee will support investments in energy, hard infrastructure, economic resilience, and SMEs in the North of Africa and the Middle East.
• The agreement will also support investment in entities with state participation or public organisations operating at local or regional levels in partner countries.
• Entities that borrow money from financial markets on their own terms without state backing will also be eligible for the guarantee.
• The guarantee will enable the development of the Transcaspian Corridor in Central Asia, enhance supply chain security for critical raw materials, and advance the Global Gateway Investment Agenda in Latin America and the Caribbean.
• The agreement is designed to support an increased number of entities, including companies with state participation or public organisations operating at local or regional levels in partner countries.
• The EIB and the European Commission aim to increase support for critical projects in partner countries through this new guarantee agreement.

Statistics:

• EUR5 billion: The amount of guarantee that will be provided to de-risk investments and expand EIB operations outside the EU.
• EUR10 billion: The potential amount of funding that will be unlocked for critical projects in clean energy, green infrastructure, and access to finance for SMEs in partner countries.
• EUR10 billion: The potential amount of funding for investments in energy, hard infrastructure, economic resilience, and SMEs in the North of Africa and the Middle East.
• 4th International Conference on Financing for Development: The conference where the European Commission and the EIB announced the new guarantee agreement.

Sources:

• European Commission and the European Investment Bank (EIB). European Commission and EIB Announce New Guarantee Agreement to Support Investments in Partner Countries.