EU/ISRAEL : EIB RESUMES ITS LENDING OPERATIONS IN ISRAEL AFTER 11 YEARS.

At the end of December 2006, Philippe de Fontaine Vive, EIB Vice-President in charge of the Facility for Euro-Mediterranean Investment and Partnership (FEMIP), visited Israel and signed two loan contracts for a total of 275 million. Following the Israeli government's ratification, on 7 December 2006, of the European Investment Bank's Framework Agreement, the EIB has resumed its operations in Israel after 11 years

The first loan agreement of 200 million was signed with the Ministry of Finance and will finance protection of the environment through municipal wastewater schemes. The second loan of 75 million was signed with Bank Hapoalim and will underpin capital investment projects of private sector Small and Medium sized Enterprises.

While in Israel, the vice president of the EIB met Shimon Peres, Vice Prime Minister with responsibility for development of the...