www.iasinsights.in ; www.iasgyaan.com posts about International Organisations(IO) for your quick revision. IO covers good no of questions in Prelims.
European Investment Bank
- The EIB is the European Union’s bank. EIB are the only bank owned by and representing the interests of the European Union Member States.
- EIB work closely with other EU institutions to implement EU policy.
- EIB are the world’s largest multilateral borrower and lender.
- It provides finance and expertise for sustainable investment projects that contribute to EU policy objectives.
- More than 90% of EIB activity is in Europe. But EIB also are a big investor around the world
Lending: The vast majority of our financing is through loans, but we also offer guarantees, microfinance, equity investment, etc.
Blending: Our support unlocks financing from other sources, particularly from the EU budget. This is blended with loans to form a full financing package.
Advising: Lack of finance is often only one barrier to investment. We help with administrative and project management capacity to facilitate investment.
It supports projects that make a significant contribution to growth and employment in Europe. It focus on four priority areas:
- Innovation and skills
- Access to finance for smaller businesses
- Climate and environment
EIB raise the money by lend on the international capital markets through bond issues. It excellent rating allows us to borrow at good rates. EIB are not in this to make a big profit. So we pass these good rates onto our clients.
EIB Multiplier effect
- It generally Finance one-third of each project, but it can be as much as 50%. This long-term, supportive financing encourages private and public sector investors to put in their funds.
What makes the EIB different
- All the projects EIB finance must be bankable. But they also must comply with strict technical, environmental and social standards.
- Headquartered in Luxembourg.
The EIB Group
- The EIB Group consists of the European Investment Bank and the European Investment Fund, which specializes in SME finance.
- The EIB is the majority EIF shareholder, with the remaining equity held by the European Union (represented by the European Commission) and other European private and public bodies.
India and EIB
- Ahead of the International Solar Alliance summit in New Delhi the President of the European Investment Bank signed a new EUR 150 million long-term loan with the Indian Renewable Energy Development Agency (IREDA) to support renewable energy investment across India. More than 1.1 million Indian households expected to benefit from clean energy produced by renewable energy schemes financed by the new initiative.
- India was the leading recipient of EIB financing for solar investment outside the European Union, both in 2017 and overall since 2013.
- The European Union and India are committed to implementing the Paris Climate agreement and working together to achieve Sustainable Development Goals, including ensuring access to affordable, reliable, sustainable and modern energy for all.