On 18 May, the Board of Directors of the European Investment Bank (EIB) approved a €4 billion credit line (or programme loan) to help national authorities, cities, regions and local communities in all EU Member States address urgent investment needs and help welcome and integrate people fleeing the war against Ukraine.
The EIB pledged these funds back in April, at ‘Stand Up for Ukraine’, a global pledging campaign for Ukraine and its refugees, but board approval was required. The EU and Canada then raised €9.1, including €4 billion from the EIB and €1 billion from the European Commission.
The EIB credit line will help to provide this support by making financing available to the development of key infrastructure and services for refugees and host communities, such as housing, schools, hospitals and access to jobs. The financing can also cover eligible operational expenditures related to the supply of equipment, facilities and services for the integration of war refugees.
This financial package will be complemented by EIB advisory support thanks to the EMBRACE Advisory Platform, a new initiative by the EIB and the European Commission.
“All EU Member States can make use of this funding opportunity and bespoke advisory for projects that help refugees start a new life in their host countries,” said EIB President Werner Hoyer. “This initiative comes together with the €668 million support we gave in early March to the Government of Ukraine to cover their urgent liquidity needs; both are part of our Solidarity Package for Ukraine, which we set up together with the European Commission.”
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National promotional banks and institutions from EU member states and the European Investment Bank on 6 May launched the €2 billion ‘Quick Response — Care for Ukrainian Refugees in Europe’ initiative. The joint initiative aims to provide immediate relief this year for refugees fleeing the war in Ukraine and to promote the integration of Ukrainian refugees in EU Member States.
The initiative was launched in Paris by five European national promotional banks and institutions, the European Investment Bank (EIB) and the European Association of Long-Term Investors (ELTI). The participants in the initiative will contribute directly or indirectly through their respective general programmes along with regional and local communities to provide housing for refugees and support their integration into local communities. The initiative could also finance education, healthcare and infrastructure needs and has a target of at least €2 billion of financial support this year.
The urgent support initiative in Europe is a first step as the group considers further measures to help Member States deal with the impact of the Russian invasion of Ukraine.
The five national promotional institutions involved are:
- Bank Gospodarstwa Krajowego (BGK — Poland)
- Groupe Caisse des Dépôts (CDC — France)
- Cassa Depositi e Prestiti (CDP — Italy)
- Instituto de Crédito Oficial (ICO — Spain)
- Kreditanstalt für Wiederaufbau (KfW — Germany)
ELTI is the European association of public national promotional banks and financial institutions gathering 31 members all over Europe.
The European Investment Bank is the long-term lending institution of the European Union owned by its Member States. It makes long-term finance available for sound investment in order to contribute towards EU policy goals.
The pan-European support initiative for Ukraine will provide loans, grants, equity investment and guarantees for eligible projects and develop innovative financing structures for public and private infrastructure, municipalities as well as private enterprises of different sizes.
Source: EU NEIGHBOURS east