What is the European Investment Bank (EIB) and what does it do?

Basically, EIB acceptable Financial arm of the European UnionBecause its main mission is to provide financing for projects that will contribute to the EU achieving its goals both inside and outside. It is currently Europe’s main instrument for financing aid. Ukraine. It is also an essential tool in credit management. Next generation. Since its founding in 1958, the Bank has had seven presidents; all were men and none were Hispanic; thus, Calviño may become the first female president of the EIB.

EIB is the only bank to do this. Its shareholders are the member states. AB. Each Member State’s participation in the bank’s capital is a function of its economic weight (expressed in GDP) in the EU at the time of its entry into the Union (Spain’s contribution is 9.66%).

decision-making bodies

Headquartered in Luxembourg, the EIB has three decision-making bodies: the Board of Governors, the Board of Directors and the Management Committee, and a control body, the Audit Committee.

Council of GovernorsComposed of 27 Member States (usually Economy ministers), it decides on credit policy, approves annual accounts and the bank’s participation in financing operations and capital increases outside the Union, and appoints the main minister. Members of the committee structure (Board of Directors, Management Committee and Audit Committee). It determines the general principles of the European Investment Bank.

Board of Directors It consists of one advisor from each EU country and one advisor from the European Commission. Thus, it consists of 28 managers. There are also 19 reserves and 6 experts. The Council has exclusive authority to decide on loans, guarantees and credits and oversees the management of the EIB.

steering committee It is the executive and permanent university body; It consists of nine members. Under the authority of the President and the control of the Board of Directors, he is responsible for the day-to-day management of the Bank and the preparation of the decisions of the Board of Directors.

audit committee It is an independent body responsible for ensuring the regularity of the bank’s transactions and books and is directly accountable to the Board of Directors. It consists of six members appointed by the Council of Governors.

Tool to minimize risks

The European Investment Bank is the majority shareholder of the European Investment Fund (EIF) and together with it forms the EIB Group. Under the European Investment Plan proposed by the Commission, the EIB Group is part of a wider strategy aimed at closing the huge investment gap by relieving investors of some of the risks inherent in projects.

Usual projects

The EIB facilitates the financing of projects aimed at the development of the most underdeveloped regions; the trend towards the modernization or reconversion of companies or the creation of new activities that cannot be fully financed by the resources available in each member state; and it is in the common interest of many states. In fulfilling its mission, the Bank facilitates the financing of investment programs together with the actions of the Union’s structural funds and other financial instruments.

Largest multilateral lender

In practice, the European Investment Bank has become the largest multilateral lender and borrower in the world. It provides financing and expertise to sustainable investment projects that contribute to EU policy objectives. The bank concentrates more than 90% of its operations in Europe but also invests heavily in the rest of the world. The EIB currently cooperates with more than 150 countries outside the EU, with these countries benefiting from around 10% of lending activity.

Products offered by EIB

The bank offers loans to all types of customers to support growth and employment, and this support often helps attract the interest of other investors. The EIB offers direct loans of over €25 million. For smaller loans, lines of credit are opened to financial institutions, which in turn lend the money to creditors.