The European Commission and the European Investment Bank (EIB) announced on Monday a new €5 billion guarantee agreement aimed at de-risking investments and expanding EIB operations in partner countries outside the European Union. Unveiled during the 4th International Conference on Financing for Development, the new guarantee could unlock up to €10 billion in funding for key projects in clean energy, green infrastructure, and small and medium-sized enterprises (SMEs). Unlike previous guarantees limited to state-backed projects, the new instrument allows support for public entities and companies with or without government backing, offering greater flexibility and quicker financing. It is also designed to lower borrowing costs for projects considered too risky by traditional lenders. The guarantee will support investments across North Africa, the Middle East, Central Asia, and Latin America, while also strengthening infrastructure and economic resilience in the EU's enlargement and Eastern Neighbourhood regions. Key initiatives include financing the Transcaspian Corridor and improving access to finance in underserved markets under the EU's Global Gateway strategy. Attribution: Amwal Al Ghad English Subediting: M. S. Salama
