OREANDA-NEWS. The board of the European Investment Bank yesterday approved more than EUR 12 billion of new loans expected to support investment in roads, railways, industrial innovation, social housing, hospitals, and energy, as well as lending by leading local banks to enhance access to finance by small businesses across Europe and around the world.

The Board opened its work by observing a minute of silence in memory of the victims of the terrorist attacks in Paris last week.

Projects approved included the first ever financial support by Europe’s long-term lending institution intended to improve accommodation for refugees: a EUR 120 million loan to help local authorities to provide accommodation for refugees and people seeking asylum at a number of sites in the German state of Brandenburg. The EIB Board also approved a EUR 1 billion loan to support reconstruction of homes and businesses in Emilia-Romagna following earthquakes in May, 2012.

“The EU Bank is not only committed to supporting crucial infrastructure, innovation and private sector investment. The European Investment Bank also has a clear responsibility to provide financial support in times of need following humanitarian emergencies or natural disasters. Earlier today we approved the EIB’s first direct support for emergency refugee accommodation and we expect to announce further similar support to local authorities or national governments elsewhere in the coming weeks.  In these sad days the EU Bank shows its continued commitment to supporting work across Europe and ensuring that people who seek refuge can be welcomed in dignity. This is consistent with the values Europe stands for and that we all strongly reaffirm despite the horror Paris, France, Europe, and humanity itself have been exposed to in the past few days”, said European Investment Bank President Werner Hoyer.

The EIB Board of Directors also agreed new support for immediate efforts to alleviate electricity supply constraints in Mozambique and financing for essential agriculture investment in Ukraine, as well as the EIB’s first ever loan in East Timor that will upgrade road links in the country.

The meeting also approved loans totalling more than EUR 3.2 billion to support lending through leading local banks for investment by small businesses and medium sized firms in Cyprus, Spain, Italy, Portugal, Belgium, Luxembourg, Georgia and Turkey.

Reflecting the EIB’s commitment to support world-class innovation and make the automotive sector more environmentally friendly, the Board also approved over EUR 1 billion for research and development investment by leading car, bus, van and truck manufacturers at plants in France, Germany, Sweden and Turkey.

New backing for strategic investment included projects to provide high-speed broadband in Italy, modernisation of hospitals in Poland, Sweden and Germany, reducing energy use in commercial property and building energy efficient homes in the UK, roads in France and Hungary and water investment in Romania and Jordan. The board also approved efforts to treat land contaminated by industrial waste in France and Belgium.

Meeting at the EIB’s headquarters in Luxembourg, representatives of the EIB’s shareholders, the 28 EU member states and the European Commission, approved a total of 47 different loans, including 7 projects earmarked for financing by the EIB under the European Fund for Strategic Investments (EFSI) as part of the Investment Plan for Europe. The diverse range of projects expected to be backed by the Investment Plan for Europe initiative include large scale biogas power generation, digital and transport infrastructure schemes, and support for funds that will support smaller investment in environmental and climate projects across Europe.

All projects, including those earmarked for support under the EU budget guarantee, need to receive approval of the EIB Board prior to loan contracts being finalised. Loans and guarantees approved by the Board of Directors will be finalised in cooperation with promoters and beneficiaries, and figures may vary.