EIB Group moves to scale up economic response to COVID-19 crisis
The European Investment Bank has discussed the creation of a €25 billion guarantee fund to enable the EIB Group to scale up its support for companies in all 27 EU member states by up to €200 billion in response to the coronavirus crisis.
The pan-European guarantee fund would serve as a protective shield for European firms facing liquidity shortages. It could be set up with contributions provided by the member states and be open to participation by other EU institutions.
The scheme would be implemented by the EIB and the European Investment Fund, which form the EIB Group, in close partnership with national promotional banks, the European Commission and other financial partners.
The board also approved a multi-beneficiary intermediated loan of €5 billion covering all EU member states, as part of its emergency response package which aims to rapidly mobilise financing for SMEs and Midcaps in the coming weeks.
In addition, the EIB Group is using existing financial instruments shared with the European Commission – primarily the InnovFin Infectious Disease Finance Facility – to finance projects that work towards halting the spread of the coronavirus, finding a cure, and developing a vaccine.
