|The Courier N° 127 May - June 1991- Dossier 'New' ACP Export Products - Country Reports Cape Verde - Namibia (EC Courier, 1991, 104 p.)|
At ECU 13.4 bn, 9.4% up on 1989 (ECU 12.25bn), the volume of loans granted by the European Investment Bank (EIB) continued to grow in 1990.
The Communitys lending institution, whose importance in the implementation of Community policies is constantly increasing, has thus in the course of its experience over more than thirty years provided very positive support in pursuit of Community objectives and in meeting the needs of economic operators.
Within the total lending figure of ECU 13.4bn, ECU 12.7bn was provided within the Community and ECU 713 million outside the Community.
At its annual meeting on 11 June 1990, the Board of Governors authorised the sixth increase in EIB capital. On 1 January 1991, the subscribed capital was doubled (2) to ECU 57.6bn. The Member States thereby restated their support for EIB action in favour of European integration, notably with the Single Market in prospect, and reaffirmed their confidence in the Bank.
Following the changes in Eastern Europe, the European Investment Bank responded to calls from its Member States to assist these countries in their transition to a market economy. By the end of 1990, it had lent ECU 215m in Poland and Hungary. In the same context, the EIB became a founder member of the European Bank for Reconstruction and Development (EBRD); it is contributing to the capital of the EBRD and is providing assistance in certain areas for the start-up of this new institution.
With regard to funding within the Community, EIB lending in 1990 was as follows:
- Loans for regional development amounted to ECU 7.4bn (ECU 7bn in 1989), i.e. 61% of the total granted in the Community. Regional development, a key factor in the balanced development of the Community, is one of the main manifestations of the solidarity which lies at the foundations of the building of Europe and therefore continues to take pride of place among the objectives pursued by the EIB. Some 90% of funding in this category related to projects located in the least favoured regions eligible for support under the structural funds.
- Transport and telecommunications infrastructure of Community relevance accounted for over ECU 3bn (ECU 2.6bn in 1989). The establishment of a satisfactory communications network facilitating the movement of goods, persons, information and data under favourable conditions and at optimum cost is another priority for the completion of the internal market to which the EIB is continuing to contribute.
- Loans for protection of the environment and improvement of the quality of life showed appreciable growth, rising to a total of ECU 2.2bn (ECU 1.7bn in 1989). This Community objective has been steadily increasing in importance and now constitutes one of the most striking aspects of the Banks activity, because it is of direct relevance to ordinary people.
Geographical breakdown of loans granted (ECU millions)
- Funding for industrial investment spanning a wide range of projects added up to ECU 4.6bn (ECU 4.2bn in 1989). 8018 global loan allocations (4) totalling ECU 2.3bn were extended for small or medium-scale investment projects, including ECU 2bn advanced to 7447 SMEs. Individual loans accounted for ECU 2.3bn. Of this total, ECU 1.8bn (ECU 1bn in 1989) benefited investment promoting the international competitiveness of industry and its integration on a Community basis, in most cases involving the use of advanced technology.
Outside the Community, in addition to the loans in Poland and Hungary, the EIB continued to provide funding under the Communitys development cooperation policy for the benefit of the 12 Mediterranean countries with which the Community has concluded financial protocols and the African? Caribbean and Pacific countries which are signatories to the Third Lomonvention.
Of the ECU 713m in loans granted, ECU 153m went to the ACP States and OCTs, ECU 345m to the Mediterranean countries and ECU 215m to Poland and Hungary.
The current year is due to see entry into force of the Fourth Lomonvention.
New financial protocols with Yugoslavia, the Maghreb and Mashreq countries and Israel are also in preparation. Added to these will be horizontal financial cooperation under which Bank support is envisaged for projects of a regional nature, particularly in the field of the environment, for a total of ECU 1.8bn.
At the end of 1990, the balance sheet total of the Bank was ECU 63.5bn (ECU 55bn in 1989).
Working for European integration
The aim of the European Investment Bank is not to achieve a high volume of lending as such but to facilitate, as much as possible, the funding of projects which promote the building of Europe. In order to accomplish this task, it lends valuable support in accommodating long-term financing requirements in the Community, notably with the Single Market in prospect in 1993.
As a bank, the EIB must conduct its activity in accordance with market forces. It adjusts the terms of its loans to conditions prevailing on the capital markets and offers project promoters access to these markets on terms available to a triple A borrower plus 0.15%. Its loans are offered in a variety of formulae and are adapted to the particular requirements of projects.
At the annual meeting of the Board of Governors, the President of the Bank, Mr Ernst-Gunther Broder, summed up the action of the European Investment Bank in support of economic and social cohesion in the Community as follows: The growth in EIB financing has continued the Banks established policy of adjustment to Community objectives, to the needs of economic operators and to market forces. The Bank has succeeded in coping with significant changes in the European landscape while at the same time strengthening its role both as a Community institution and as a market participant.
Financing of priority objectives
The European Investment Bank works for the balanced development of the Community in accordance with the guidelines laid down by Article 130 of the Treaty of Rome and confirmed in the Single Act. Operating on a non-profit-making basis, the Bank funds investment which must help in achieving one or more of the following objectives:
- development of less favoured regions, - improvement of transport and telecommunications infrastructure of European importance,
- protection of the environment, improvement of the quality of life and urban development,
- achievement of Community objectives in the field of energy,
- strengthening the international competitiveness of industry and its integration on a Community basis,
- support for the activity of small and medium-sized enterprises by means of global loans).
Regional development, which has always been the main task of the European Investment Bank, as reaffirmed on a number of occasions by its decision-making bodies, continues to be in the forefront of the objectives pursued in advancing the economic and social cohesion of the Community.
In 1990, a total of ECU 7.4bn (ECU 7bn in 1989) was earmarked for investment geared to this objective. About 90% of these funds, accounting for some 61 % of activity in the Community, was focused on projects in the least favoured regions as defined in the context of the reform of the structural funds - 46% was channelled to regions experiencing the most acute structural problems (Objective 1), 38% to regions faced with problems of industrial decline or conversion (Objective 2) or rural areas (Objective 5b) and about 5% to areas targeted for other forms of Community action.
About 56% of the total volume of loans for regional development involved infrastructure, mainly transport and telecommunications, 33% the productive sector, particularly SMEs, and 11 % energy installations.
Improving transport and telecommunications infrastructure is essential for the free movement of goods, persons, information and data under favourable conditions and at optimum cost.
As was already noted in previous years, the prospect of the Single Market is generating a marked increase in investment for communications, which the EIB is supporting in line with its role. Of the ECU 3.1 bn advanced (ECU 2.7bn in 1989), ECU 1.3bn went to the improvement of telecommunications systems, notably by satellite and by optical fibre cable between Europe and the United States, ECU 872m on air transport, ECU 857m on road and rail links, including the Channel Tunnel, and ECU 46.3m for shipping and intermodal terminals.
Loans totalling ECU 2.2bn (ECU 1.7bn in 1989) were granted for the protection of the environment, improvement of the quality of life and urban development, another Community objective which is of constant concern to the EIB. It not only grants loans for projects aimed solely at protecting the environment - but also systematically vets the impact of each project on the environment and its conformity with legislation in force, often recommending a particular option considered to be most appropriate and offering the best cost/benefit ratio.
Funds totalling ECU 1.4bn were devoted to waste water treatment, the improvement of drinking water quality and solid waste processing, ECU 468m to flue-gas cleaning equipment at thermal power stations, refineries and various industrial plants, ECU 95.8m to protection of the natural and cultural heritage and ECU 263m to the improvement of the urban environment.
Funds totalling ECU 2bn were made available from global loans under draw-down (the same figure as in 1989) for ventures promoted by small and medium-sized enterprises. Of the 7447 allocations extended, 5622 (ECU 1.6bn) went mainly to industry. About two thirds of the allocations benefited entrerprises in less-favoured areas and about four fifths, roughly 50% of the total sum involved, helped firms with fewer than 50 employees.
Loans for investment serving to promote the international competitiveness of industry and its integration on a Community basis, most of the projects involved here making use of advanced technology, showed a marked increase, rising to ECU 1.8bn (ECU 1bn in 1989). The loans centred, inter alia, on the aircraft and motor vehicle construction industries, chemicals and pharmaceuticals and paper and pulp production.
Investment geared to Community objectives in the field of energy claimed ECU l.5bn (ECU 1.7bn in 1989). Of this total, ECU 667m was earmarked for development of indigenous resources, ECU 497m for rational use of energy and ECU 314m for import diversification.
The European Investment Bank borrows most of its resources on the capital markets at fixed or floating rates in the currencies available and requested by project promoters. By observing the rules of rigorous banking management, the EIB has acquired a sound position as a borrower on the markets, which has earned it the highest (AAA) credit rating and enables it to mobilise a large volume of funds on the best terms available at the time. As it operates on a non-profit-making basis, it passes on this advantage to its borrowers. It lends the currencies which it has borrowed; its loans are disbursed in a single currency - which may be the borrowers own national currency, a foreign currency or the ecu - or in a combination of currencies arranged in the light of borrowers preferences and the Banks holdings.
Concurrently with the increase in its lending, the Bank considerably increased its borrowings on the capital markets. In 1990, the total of resources raised was ECU 11bn, i.e. an increase of 21.7% compared with 1989 (ECU 9bn).
The EIB obtained long-term fixed-rate funds totalling ECU 9.1bn by way of public issues (ECU 7.6bn) and private placements (ECU 1.5bn). Its presence on the bond market was characterised, amongst other things, by large (jumbo) issues in certain currencies which were sometimes arranged in successive fungible tranches, thereby amounting to nothing less than benchmarks, particularly on the ecu market where a benchmark of ECU 1.125bn was created. Third party participations in loans totalled ECU 35.6m. Long-term floating-rate borrowings amounted to ECU 701m (ECU 511m in 1989).
In order to respond most effectively to the requests of projects promoters, the Bank borrowed in thirteen currencies, including the ecu, as follows (million ecus):
On the money market the EIB raised ECU 1.16bn, an increase to more than three times the amount raised in the previous year (ECU 316m), which can be explained by greater demand from borrowers for variable-rate loans, particularly following the uncertainties with regard to trends in long-term rates. Its commercial paper programmes were extended to currencies other than the ecu and the United States dollar, such as the pound sterling, the Italian lira and the Dutch guilder.
Country-by-country overview of financing within the Community
Of the ECU 206.3m (BF 8.8bn) made available in Belgium, ECU 200.3m, including ECU 23.6m from New Community Instrument resources, were provided in the form of global loans(7). Global loans already under drawdown gave rise to allocations worth ECU 108.9m in support of 87 ventures, all implemented by SMEs.
Some ECU 6m went towards extending the facilities of EUROCONTROL, the European Organisation for the Safety of Air Navigation, with a view to relieving congestion in European air space and preventing any deterioration in coming years with the prospect of air traffic doubling by the end of the century.
EIB lending in Denmark amounted to ECU 564.7m (DK 4.4bn).
Almost two thirds of this sum (ECU 368.6m) centred on communications: extension and modernisation of the national telecommunications network, electrification of the Nyborg-Odense rail line plus acquisition of rolling stock, construction of a fixed road/rail link across the Great Belt and modernisation of a fleet of aircraft.
Global loan financing ran to ECU 90.6m, while global loans already on tap gave rise to allocations worth ECU 63.2m in favour of 142 ventures, all promoted by SMEs.
A total of ECU 68.3m contributed towards establishing natural gas grids in various parts of the country and ECU 24.3m was given over to upgrading the district heating network and improving waste water treatment facilities in Odense as well as to expanding the sewerage system in Esbjerg, Jutland.
In addition, ECU 12.8m served to modernise a waste incineration plant to the south of Copenhagen and to convert the facility into a combined heat and power plant.
Financing in Germany came to ECU 863.5m (DM 1.8bn).
Close on half of this amount (ECU 417.3m) was made available in the form of global loans. Global loans already under drawdown gave rise to allocations worth ECU 501.9m in support of 718 ventures, including 178 implemented by SMEs.
ECU 200.4m was advanced for rationalising production and R&D capacity at a commercial vehicle plant, constructing a car paint shop in Saxony in the east of the country and building a research and engineering centre for the motor vehicle industry. ECU 59. I m went towards producing wood-free paper and constructing a panel plant.
A further ECU 156.3m helped to finance the Amadeus pan-European computerised travel information and distribution system, construction of airport infrastructure and upgrading of the road network in North Rhine-Westphalia.
ECU 30.4m was given over to installing denitrification equipment at two coal-fired power stations in Dusseldorf and to extending and modernising a sewage treatment plant in Cologne, one of the largest in Germany.
In Greece, the EIB lent a total of ECU 176.3m (DRA 34.8bn).
Of this, ECU 22.8m was made available for improving water supplies and waste water treatment and disposal facilities in the towns of Corfu, Larissa, Heraklion and Chios, ECU 46.9m helped with construction of a power line between Western Macedonia and the Athens conurbation plus implementation of small electricity supply schemes throughout the country and ECU 40.7m was devoted to construction of motorway links between Varibobi and Yliki, on the Athens - Yugoslav frontier route, and between Corinth and Tripoli as well as to various road schemes in Central Macedonia and building of an underground car park in Athens.
ECU 65.9m was provided in the form of global loans, while global loans already on tap gave rise to allocations worth ECU 46.9m in favour of 78 ventures, including 39 promoted by SMEs.
Confirming the trend observed since the countrys accession to the Community, EIB financing in Spain again showed an upturn in 1990 when aggregate lending ran to ECU 1942m (PTA 251.6bn).
This figure included ECU 854.3m for helping to improve communications infrastructure. ECU 352.2m focused on upgrading air links both within the Community and between the EEC and non-member countries by renovating aircraft fleets and acquiring maintenance equipment. ECU 400.6m served to modernise and extend the countrys telecommunications network. ECU 101.6m was given over to building an urban motorway and a tunnel in Catalonia and modernising the rail network in Santander and Bilbao as well as the port of Barcelona.
ECU 180.9m went towards extending, modernising and strengthening the electricity supply network in Asturias, Cantabria, Castilla La Mancha, Castilla y L, Galicia and Madrid and towards expanding and modernising the countrys high voltage power grid.
In the productive sector, ECU 254.1m contributed towards modernising and uprating car manufacturing facilities, ECU 89.4m helped with constructing parts of the Airbus A-320/330/340 and ECU 68.7m was channelled into modernising three refineries in Castilla La Mancha, Catalonia and Galicia, with the emphasis on production of low-lead and unleaded petrol and the combined generation of heat and power for industrial applications.
A further ECU 83.9m was advanced for acquiring aircraft to fight forest fires.
ECU 410.7m was provided in the form of global loans, while global loans already under drawdown gave rise to allocations worth ECU 232.7m in support of 641 ventures, including 597 implemented by SMEs.
EIB lending in France amounted to ECU 1684.6m (FF 11.6bn).
This total included ECU 742.8m in the form of global loans, with global loans for funding investment by SMEs representing ECU 290m. Global loans already on tap gave rise to allocations worth ECU 582.3m in favour of 3953 ventures, including 3717 promoted by SMEs.
Financing for communications infrastructure came to ECU 646.9m, of which ECU 249.8m was devoted to construction of numerous stretches of motorway: the Laon-Rheims and Troyes-Chns-sur-Marne sections of the A 26, the Manosque-Sisteron section of the A 51, the Cuer-Le Cannet-des-Maures section of the A 57 (Esterel-CdAzur) plus stretches of the A 49 (RhAlpes), A 43 (Savoie) and A 55 (Languedoc-Roussillon). ECU 253.6m went towards establishing the TGV-Nord and TGV-Atlantiquet high-speed rail links, 107.2m towards constructing the Channel Tunnel and ECU 36.3m towards acquiring commuter aircraft for use on interregional routes.
Individual loans to industry came to ECU 182m in all. ECU 163.6m helped to finance work by the European consortium on developing the Airbus A321, part of which is also to be carried out in the United Kingdom and in Germany, and production of a light executive aircraft. ECU 18.5m was given over to constructing a unit producing industrial gases.
A further ECU 60m served to finance equipment, on the CdAzur, required for operating the Amadeus pan-European computerised travel information and distribution system, while ECU 36.1m contributed towards modernising the Tricastin uranium enrichment plant.
ECU 10.8m was made available for funding the Euro Disneyland theme park to the East of Paris and ECU 5.8m for installing cable television networks.
In Ireland, the EIB lent a total of ECU 217.7m (ECU 167.1m).
Of this, ECU 113.6m helped to improve communications through acquisition of aircraft, numerous improvements to the road network, particularly in Bunratty, Castlebar, Athlone and Galway, and extension of the telecommunications system, notably through a link to the optical fibre cable between the United Kingdom and the United States and construction of satellite earth stations.
Some ECU 48.2m was advanced for implementing various forestry schemes along with ECU 29.8m for improving water supplies and extending waste water collection and treatment facilities, mainly near Bray, Dun Laoghaire and Kerry.
ECU 26m was provided in the form of global loans which, as they were concluded only recently, have not yet been drawn on to any great extent: allocations worth ECU 5.3m were made available in support of six SMEs.
EIB financing in Italy amounted to ECU 3.9bn (LIT 5900bn).
Of this, ECU 1.1bn was provided in the form of global loans, while an identical amount was allocated from global loans already under drawdown in favour of 2115 ventures, including 1984 implemented by SMEs.
In the energy sector, ECU 732.4m helped to improve electricity generating facilities (modernisation of a coal-fired power station and construction of a combined heat and power plant in Liguria plus extension and modernisation of a thermal power station in Sardinia and five hydra plants in Central and Northern Italy) and power transmission and supply systems in the Mezzogiorno, to tap oil and gas deposits off the coast of Abruzzi, Calabria, Emilia-Romagna and Sicily as well as onshore deposits in Piedmont, and, finally, to expand natural gas transmission and supply grids in several areas of Central and Northern Italy.
A further ECU 722.9m was channelled into modernising and extending the telecommunications system in the Mezzogiorno.
ECU 551.5m was given over to water supply infrastructure and environmental protection schemes centred mainly on waste water collection and treatment and solid waste processing in several regions (including ongoing work on implementing the environmental protection programme for the Po basin) as well as to combatting erosion, landslips and flooding in Abruzzi, Basilicata, Latium, The Marches and Veneto.
Individual loans for the industrial and service sectors ran to ECU 520.8m and went towards modernising paper mills in Abruzzi and in Friuli-Venezia Giulia plus other parts of Northern Italy, extending and modernising a printing works in Piedmont and the pharmaceuticals industry in Lombardy and Latium, producing construction materials in Emilia-Romagna, modernising refineries in Sardinia to reduce products sulphur content and in Sicily to produce lead-free petrol, upgrading a chemicals complex in Tuscany, processing foodstuffs in Emilia-Romagna, modernising and extending an ice-cream factory in Naples, restructuring a domestic appliances plant in Friuli-Venezia Giulia, modernising a float glass works in Abruzzi, producing commercial vehicle components in Northern Italy and car tyres near Milan and Turin and manufacturing presses in Turin province.
The transport sector claimed ECU 205.8m, devoted inter alia to widening the Rome-Naples motorway, renewing the fleet of aircraft providing links between the Mezzogiorno and other regions of the country and extending Bologna airport.
In Luxembourg, ECU 11.8m (LF 500m) was made available for constructing an audio and video cassette factory in the south of the country where the traditional industrial activity, steel manufacturing, has gradually declined.
Lending in the Netherlands ran to ECU 245.3m (HFL 565.1m).
This figure included ECU 167m for enlarging aircraft fleets and installing a flight simulator.
Industrial projects attracted ECU 78.2m, comprising ECU 65.1m in global loan finance and ECU 13.12m for producing high performance synthetic fibre at two plants in southern Limburg.
Global loans currently under drawdown gave rise to allocations worth ECU 57.1m for 35 ventures, ail promoted by SMEs.
In Portugal, the EIB lent a total of ECU 794.7m (ESC 144.4bn).
The communications sector claimed nearly half of financing provided, i.e. ECU 374.4m, including ECU 212.8m for constructing the Lisbon by-pass, building new sections of the Lisbon-Oporto motorway, upgrading the road network throughout the country and implementing various transport infrastructure schemes in the Azores. ECU 138.1m helped to extend and modernise the telecommunications system, while ECU 23.5m went towards eguipping the multipurpose terminal at the Sines coal port.
A further ECU 96.8m was earmarked for the countrys power supply grid, ECU 8m for constructing a household waste processing plant near Lisbon and ECU 5m for an afforestation programme in the centre of the country.
ECU 187.1m was channelled to the industrial sector, with funds being given over to extending a papermaking complex in central Portugal, modernising and expanding two factories in Setubal and Cacia manufacturing both cars and motor vehicle components, producing transport equipment, modernising and enlarging a high density polyethylene plant in the south of the country, extending and modernising a glass container factory, modernising and expanding a power transformer plant and constructing a resin and glue factory in the north of the country.
ECU 123.3m was provided in the form of global loans for smaller businesses, while ECU 157.8m was allocated from global loans already on tap in support of 595 ventures, all implemented by SMEs.
EIB financing in the United Kingdom amounted to ECU 1892.8m (£1.4bn).
Of this, ECU 528.5m was given over to various water supply and waste water collection schemes throughout England and Wales.
In the transport sector, ECU 162.3m went towards modernising airline fleets through acquisition of new aircraft as well as towards constructing and extending passenger terminals at Birmingham and Glasgow airports. ECU 242.3m helped to extend the docklands light railway system in East London and to construct the Channel Tunnel.
Individual loans to industry ran to ECU 484.3m and focused mainly on foodstuffs production, foundries, manufacture of high-quality car bodies, modernisation of a welding shop for the motor vehicle industry and construction of factories producing packaging for the food industry, steel wire and building materials. Funds were advanced, among other things, for expanding the paper industry, modernising four electrical appliance factories, constructing a liquefied industrial gas unit, modernising and extending chemicals plants, constructing the long-range Airbus A330/340 and modernising several hotels.
Financing provided outside the Community
Financing advanced in countries outside the Community ran to ECU 669m from the EIBs own resources and to ECU 43.9m from Member States or Community budgetary resources, adding up to ECU 712.9m compared with ECU 611.9m in 1989. Of the 1990 total, ECU 153.4m went to finance investment in the ACP countries and OCTs, ECU 344.5m in the Mediterranean countries and ECU 215m in Eastern Europe.
The Communitys development cooperation policy
ACP countries and OCTs
Last year the EIB acted to support investment in 16 ACP States and OCTs.
In Africa, projects were funded in 11 countries to a total of ECU 140m (ECU 109m from the Banks own resources and ECU 31m from risk capital).
Financing for countries in West Africa totalled ECU 101.1m. In Nigeria, a global loan was granted to finance small and medium-sized enterprises in industry, agro-industry, tourism and mining. Other loans covered infrastructure projects centring on power supplies and drainage and sewage systems plus a feasibility study on setting up a cocoa-bean processing plant in CdIvoire, renovation of the Akosombo hydroelectric power plant in Ghana and construction of an oil mill and a soap factory in Guinea.
In Southern Africa, the Bank advanced funds totalling ECU 22.9m for the following projects: in Malawi, a water supply scheme in Blantyre, the countrys main industrial and commercial centre; in Madagascar, industrial fishing and shrimp processing and the modernisation of a textile plant; in Zimbabwe, extension of the electricity transmission and distribution network; and in Zambia construction of a refrigerated storage depot for flowers, fruit and vegetables for export. In Mozambique, a global loan was granted for small and medium-scale ventures.
In East Africa, the Bank provided a total of ECU 16m. In Uganda, a global loan was made available to finance small and medium-sized enterprises in industry, agro-industry and tourism; a loan was also granted for rehabilitation and extension of the electricity supply system. In Tanzania, funds were advanced for refurbishing and renovating several hotels.
In the Caribbean, a global loan of ECU 4.2m was granted in Barbados to assist small and medium-sized private enterprises in industry and a global loan for ECU 1m was provided in Jamaica to finance equity participation in SMEs.
In the Pacific, a total of ECU 2m was advanced from risk capital in the Solomon Islands to increase the capital of the Development Bank of the Solomon Islands (DBSI) and to finance small and medium-sized enterprises in industry, tourism and transport.
In the OCTs, a sum of ECU 3.2m (including ECU 1.9m from risk capital) was made available in Aruba to improve electricity supplies and instal a new highvoltage substation. A further ECU 3m went towards upgrading electricity supplies in the Cayman Islands.
Mediterranean countries. In Yugoslavia, loans totalling ECU 182m will help to fund construction of the Belgrade bypass on the Trans-Yugoslav Highway and improvements to the countrys main railway line.
The Maghreb countries. In Algeria, ECU 40m was advanced for a section of the East-West motorway in the north of the country, and a further ECU 1m from risk capital went to fund various studies on the scope for improving electricity production and distribution.
In Morocco, a total of ECU 11m was devoted to a project for waste water collection and treatment facilities in coastal towns and villages in order to improve the environment along the Mediterranean seaboard: a further ECU 2m was advanced from risk capital to finance the formation of a venture capital company promoting enterprises in the private sector.
In Tunisia, ECU 35m will be channelled to a project for the improvement of the environment in the Gulf of Gabintended to stop phosphated gypsum waste from chemical plants being dumped into the sea; a further ECU I Sm. including ECU 3m from risk capital, was advanced to the Banque de Dloppement Economique de Tunisie (BDET) in the form of a global loan for small and medium-scale industrial and agro-industrial ventures.
The Mashreq coquetries. In Jordan, a global loan of ECU 12.5m was made available for funding investment promoted by small and medium-sized industrial enterprises.
In Egypt, a sum of ECU 2m was advanced from risk capital to renovate a hotel complex in Luxor.
Financing of ECU 10m helped to fund construction, to the north of Valetta, of a seawater desalination plant to improve the countrys drinking water supplies.
A global loan for ECU 34m was granted to fund industrial ventures and environmental improvements, mainly in the water sector.
European Community cooperation with countries in Central and Eastern Europe
As part of the cooperation policy pursued by the European Community with countries in Central and Eastern Europe, the European Investment Bank has been authorised to lend up to a total of ECU 1bn in Poland and Hungary in support of capital investment helping to improve the economic situation of those countries.
In Hungary, EIB lending totalled ECU 120m. Of this, ECU 80m was granted for the improvement of the telecommunications network, a further ECU 25m was advanced in the form of a global loan for small and medium-sized enterprises in industry, related services and tourism and for schemes aimed at environmental protection or energy saving, and ECU 15m was earmarked for improving electricity distribution in the country.
In Poland, lending totalled ECU 95m. A sum of ECU 50m benefited the gas industry: modernisation, expansion of production and reduction of air pollution; a further ECU 25m was granted in the form of a global loan for small and medium-scale ventures in industry, related services and tourism and for environmental protection or energy saving schemes, and ECU 20m was earmarked for railway modernisation.