Businesses and financial institutions in several EU partner countries will be able to access €1.3 billion in new financing under an agreement between the European Commission and EIB Global, the European Investment Bank’s arm focused on activity outside the EU.
The funding is intended to support infrastructure projects linked to clean energy and digitalisation, with support from a €362 million EU guarantee under the European Fund for Sustainable Development Plus (EFSD+), the Commission and EIB Global announced on Friday.
The EFSD+ guarantee is allocated across four areas over the next three years: €99 million for the Western Balkans, €30 million for the Eastern Neighbourhood, €22.5 million for Turkey, and €210 million for the Middle East and North Africa.
Andrew McDowell, director general of EIB Global, said the agreement would use public guarantees to help bring in private investment and support small businesses.
Dubravka Šuica, the EU Commissioner for the Mediterranean, stated the financing would support investments under the Pact for the Mediterranean, including projects in renewable energy, water and digital sectors.
Where the money will go
Part of the package involves €482 million in financing that EIB Global will channel through local banks, with the aim of supporting sectors including textiles and agrifood, as well as innovation and green and social projects in the Eastern and Southern Neighbourhood and the Western Balkans, EIB Global said.
A further €167 million in guarantees will be used in the Western Balkans to reduce risk for financial intermediaries and support lending for clean energy, energy efficiency and digital projects.
The package also includes up to €691 million in EIB financing for major connectivity and renewable energy projects in the Southern Neighbourhood, the Western Balkans and Turkey.
Marta Kos, the EU Commissioner for Enlargement, said the partnership with the EIB would support infrastructure investment and access to finance for small businesses in partner countries.
