EIB and five national promotional institutions to cooperate in the fight against COVID-19

European development institutions have a common mission: to support the economy and to contribute to sustainable growth and jobs. This mission is even more urgent in the current crisis.

Given the enormous challenge posed by COVID-19, European governments and institutions must mobilise resources at unprecedented levels and deploy them effectively. European solidarity, built over many years of collaboration, is instrumental to executing an effective response. With that aim, the chief executives of national development banks from France (CDC-BPI), Germany (KfW), Italy (CDP), Poland (BGK) and Spain (ICO), together with the president of the European Investment Bank, have discussed responses to the economic consequences of the COVID-19 crisis.

The discussions focused on the promising results of the first measures taken by Member States and at the EU level, learning from each other and ensuring the complementarity of different programmes. Together with all the other national promotional banks and institutions (NPBIs), they committed to supporting economies with all the resources at their disposal.

“We have worked closely together in the past to address crises by supporting the economy and mitigating downturns. We are determined to act together once again. It is vital for our economies that European financing tools complement national ones. It is also crucial that every euro gets to where it is needed – as quickly as possible.”

They will mostly focus on small businesses and mid-caps, which urgently need liquidity and working capital to survive the lock-down. Many small businesses are already benefitting from the emergency measures taken by national governments and institutions: a moratorium on existing loan payments or other liabilities, loan guarantees of more than 80% in some cases, and new tools for supporting the sectors most impacted by the shutdown.

“Our mission is also to provide a long-term vision for European economies. Long-term investments will be at the heart of the economic recovery, strengthening employment, innovation and sustainability.”

In addition to transport, tourism, and research and development, several other economic areas – social infrastructure (health, education, affordable housing), digital infrastructure and energy infrastructure – will need substantial investment to remain competitive. These investments will fortify the European economy, increasing its resilience and relevance. The European Commission’s InvestEU Programme is a major element in this effort, together with other national and EU policy measures.

Following the exchange among development banks, they have committed to:

• Further develop our cooperation and focus on synergies;
• Explore possible common initiatives;
• Explore the need for new tools along with the existing ones, notably at European level.

Original source: EIB
Published on 21 April 2020