PositionEuropean Union. European Investment Bank

The European Investment Bank can finance up to half of a project's total cost if it contributes to one or more of the following six financing objectives:

- economic and social cohesion and convergence in the Union

- support for innovation (Innovation 2010 initiative)

- support for small and medium-sized enterprises

- protecting and improving the environment

- development of trans-European networks

- sustainable, competitive and secure energy.

The EIB offers the following range of products:

- Direct individual loans to public and private promoters, in different currencies (euro, pound sterling, dollar and yen) and with fixed, revisable or convertible interest rates, for projects representing an investment of more than 25 million. Deferred repayment of capital is possible during the construction phase.

- Intermediated loans through lines of credit for projects of under 25 million and open to banks and financial institutions which serve as intermediaries, lending the funds on their terms and at their risk to project promoters, generally SMEs and local authorities.

- Guarantees, usually granted to banks or leasing companies. In some cases, a guarantee can be more attractive than a loan, since the added value can be greater and the cost of the capital is lower.

- Technical assistance provided by economists, engineers and experts in a given sector (eg studies on legislation, regulatory reforms, grant of concessions or feasibility studies).

- Venture capital, through the European Investment Fund (EIF), with two branches of products: credit enhancement activity for the securitisation of transactions pooled by financial institutions either in 'synthetic' transactions or distributed on capital markets; guarantee or...

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