EIB and Bancóldex foster consolidation and stabilisation of peace through enterprise development in Colombia

The European Investment Bank (EIB) and Bancóldex, Colombia’s enterprise development bank, have signed a memorandum of understanding to strengthen cooperation between the two institutions with a view to promoting inclusive and sustainable social and economic development in Colombia.

Under this new cooperation agreement, the EIB is examining the possibility of granting Bancóldex a loan of EUR 150m (some COP 540bn) to promote economic activity in the areas most affected by the conflict. This funding from the European Union’s bank is designed to support microenterprises and SMEs operating in those areas, enabling them to develop their projects and thereby fostering job creation and economic growth.

Supporting the post-conflict economy was precisely one of the main issues discussed at the meetings of the European delegation with the Colombian authorities. The EIB reiterated its willingness to provide a loan of up to EUR 400m (more than COP 1.4bn) to develop infrastructure and projects that will have a positive impact in the areas most affected by the conflict.

“The EU bank wants to support Colombia by facilitating investments that contribute to post-conflict efforts. The agreement with Bancóldex will enable micro, small and medium-sized enterprises trying hard to get ahead in the most affected areas to benefit from our funding,” said EIB President Werner Hoyer when the signing the agreement. “It is a great example of our priorities in Colombia and Latin America: working to promote social development through projects that help to improve people’s lives,” he added.

The European Union is the main partner for the development of the Latin America region, its number one investor and second-biggest trade partner. The EIB is the long-term lending institution of the European Union owned by its Member States. It makes long-term finance available for sound investment in order to contribute towards EU policy objectives.

Original source: EIB
Published on 23 July 2019