The European Investment Bank (EIB) Group announced on Wednesday that it will provide up to €5.2bn in the coming months to combat the coronavirus (COVID-19) pandemic outside the European Union. The EIB, a publicly owned bank whose shareholders are the EU member states, said the financing comes as part of the Team Europe response to the pandemic. It added that the funds are supported by guarantees from the EU budget. It will strengthen urgent health investments and accelerate long-standing support for private sector investment that reflects financing needs in over 100 countries worldwide. The fast-tracked support will help sustain jobs and livelihoods in sectors most threatened by the economic and social impacts of the coronavirus. It will be followed by additional long-term health and business financing as needed. EIB President Werner Hoyer said, "The COVID-19 pandemic is already hitting many countries and will have profound economic consequences around the world. Especially in vulnerable countries, this crisis will destroy entrepreneurial networks and exacerbate existing debt distress. We urgently need to show that Europe is there for our partners when they need us." The EIB has been in contact with public and private sector clients to determine the most effective approach to enhance public health preparedness and business resilience. The move comes as part of the EIB's longstanding support for sustainable and inclusive growth worldwide, the bank says. The EIB will also provide technical assistance and share sector expertise to strengthen and enhance the impact of new investment. It stands ready to accelerate about €1bn of disbursements on existing approved loans to help the health sector in non-EU countries face the coronavirus pandemic. The finance would also ensure that business activity can access immediate financing to counter cash flow and liquidity challenges. The support will include that for new public health efforts, helping clients refocus operations to the health crisis and accelerating approved private and public sector projects. Fast-track financing will be available for countries where the EIB already operates. The initiative has been designed so that EIB financing can be supported by additional backing from international and European development finance partners.
