WRITTEN QUESTION No. 4/97 by Karin RIIS-JØRGENSEN to the Commission. EIB-funded investment projects
Date: 1997-01-22
Institutions: European Parliament, RIIS-JOERGENSEN
Subjects: Denmark, EIB loan, European Investment Bank, aid to undertakings, competitiveness, investment aid, job creation, small and medium-sized enterprises













EUR-Lex - 91997E0004 - EN






Avis juridique important




|



91997E0004

WRITTEN QUESTION No. 4/97 by Karin RIIS-JØRGENSEN to the Commission. EIB-funded investment projects  


Official Journal C 319 , 18/10/1997 P. 0017 





WRITTEN QUESTION E-0004/97 by Karin Riis-Jørgensen (ELDR) to the Commission (22 January 1997)Subject: EIB-funded investment projectsIn Denmark the FinansieringsInstituttet for Industri og Hångværk (Financial Institute for Industry and Craft Trades) (FIH) administers loans funded by the European Investment Bank (EIB). Small and medium-sized undertakings with investment projects covered by the objectives of the global loan system may take out FIH loans funded by the EIB.On what terms and how was the FIH selected to administer EIB global loans in Denmark?In what circumstances may the FIH refuse a loan to an undertaking?What are the terms of the EIB lending to the FIH?One of the EU's objectives is to encourage access by small and medium-sized undertakings to capital. How does the Commission ensure that the EIB's lending policy is to the advantage of SMUs and hence in line with the EU's objectives, where global loans are granted via national financial institutions such as the FIH in Denmark?Answer given by Mr de Silguy on behalf of the Commission (11 April 1997)For close on thirty years, the European Investment Bank (EIB) has employed a decentralized financing procedure (global loans), in close touch with investors and their needs, to support small and medium-scale projects that, for reasons of operational efficiency, effective vetting and knowledge of this market segment, it would not be possible to finance through individual loans. The 130 or so banks and financial institutions which are partners of the EIB and act as intermediaries for its global loans in the Community have been selected on the basis of their network of contacts with small and medium-sized enterprises (SMEs) at national, regional and even local level and because they are able to vet projects in that sector.These intermediaries vet projects to be financed in accordance with the criteria laid down in the agreement governing the granting of global loans. As a general rule, the following criteria apply: projects costing between ECU 20 000 and ECU 12.5 million and undertaken by firms which may employ up to 500 workers (priority given to firms with fewer than 50 workers) and whose net fixed balance-sheet assets do not exceed ECU 75 million. The intermediary banks manage the loan and the associated risk. The EIB's lending terms as regards the FIH in Denmark are no different from those for other intermediaries and closely reflect market conditions and the cost of resources raised by the EIB. The financing of projects undertaken by SMEs helps to improve their competitiveness and, in the case of capacity-augmenting projects, to support job creation.