EU: crisis, reactions and the EIB - UBI Banca
EU: crisis, reactions and the EIB - UBI Banca
EU: crisis, reactions and the EIB - UBI Banca
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<strong>EU</strong>: <strong>crisis</strong>, <strong>reactions</strong> <strong>and</strong> <strong>the</strong> <strong>EIB</strong><br />
INTERNATIONAL BANKING FORUM 2013<br />
Brescia, 13-14 June 2013<br />
Markus BERNDT<br />
Head of Division, Policy + Strategy, Economics Department<br />
European Investment Bank<br />
m.berndt@eib.org<br />
Economist for Italy: Luca Gattini, l.gattini@eib.org
<strong>EU</strong>: <strong>crisis</strong>, <strong>reactions</strong> <strong>and</strong> <strong>the</strong> <strong>EIB</strong><br />
Crisis <strong>and</strong> recent developments: real economy<br />
Changes in <strong>EU</strong> real GDP <strong>and</strong> components<br />
(Index, 2007 = 100)<br />
105<br />
100<br />
95<br />
GDP<br />
Domestic dem<strong>and</strong><br />
90<br />
Investments*<br />
85<br />
80<br />
2007 2008 2009 2010 2011 2012 2013 2014<br />
* Gross fixed capital formation<br />
Source: Eurostat, May 2013<br />
Growth rate of investments*<br />
15%<br />
10%<br />
5%<br />
0%<br />
‐5%<br />
‐10%<br />
‐15%<br />
‐20%<br />
2006 2007 2008 2009 2010 2011 2012 2013 2014<br />
CY, GR, IE, IT, MT, PT, SI, ES All o<strong>the</strong>r eurozone<br />
Non‐eurozone<br />
US<br />
* Gross fixed capital formation<br />
Source: Eurostat, May 2013<br />
2
<strong>EU</strong>: <strong>crisis</strong>, <strong>reactions</strong> <strong>and</strong> <strong>the</strong> <strong>EIB</strong><br />
Crisis <strong>and</strong> recent developments: real economy<br />
Investment rates in <strong>the</strong> <strong>EU</strong><br />
per cent of GDP<br />
29%<br />
27%<br />
25%<br />
23%<br />
21%<br />
19%<br />
17%<br />
1995 1997 1999 2001 2003 2005 2007 2009 2011<br />
<strong>EU</strong> big 4 <strong>EU</strong> 7 small <strong>EU</strong> Cohesion <strong>EU</strong> NMS<br />
Source: Eurostat<br />
3
<strong>EU</strong>: <strong>crisis</strong>, <strong>reactions</strong> <strong>and</strong> <strong>the</strong> <strong>EIB</strong><br />
Crisis <strong>and</strong> recent developments: financials – end-user lending<br />
Cross-country st<strong>and</strong>ard deviation of interest rates on new loans across<br />
euro area countries<br />
a) Loans to non-financial corporations (floating rate <strong>and</strong> up to 1 year)<br />
140<br />
120<br />
100<br />
80<br />
60<br />
40<br />
20<br />
0<br />
Feb-03<br />
Sep-03<br />
Apr-04<br />
Nov-04<br />
Jun-05<br />
Jan-06<br />
Aug-06<br />
Mar-07<br />
Oct-07<br />
May-08<br />
Dec-08<br />
Jul-09<br />
Feb-10<br />
Sep-10<br />
Apr-11<br />
Nov-11<br />
Jun-12<br />
Up to €1 million<br />
Over €1 million<br />
Source: ECB.<br />
4
<strong>EU</strong>: <strong>crisis</strong>, <strong>reactions</strong> <strong>and</strong> <strong>the</strong> <strong>EIB</strong><br />
<strong>EU</strong> response to <strong>the</strong> <strong>crisis</strong><br />
The <strong>EU</strong>, <strong>and</strong> <strong>the</strong> eurozone in particular, responded to <strong>the</strong> 2009 <strong>crisis</strong><br />
with joint actions –<br />
A mixture of emergency <strong>and</strong> structural measures<br />
Emergency: to reduce <strong>the</strong> risks to financial instability <strong>and</strong> to <strong>the</strong><br />
liquidity position of sovereigns<br />
Structural: to address long-term weakness of <strong>the</strong> current<br />
infrastructure of <strong>the</strong> monetary union<br />
Immediate response to <strong>the</strong> emergency – backstops<br />
Direct support <strong>the</strong> banking system to safeguard financial stability: ECB<br />
non-st<strong>and</strong>ard policy measures<br />
Increased number <strong>and</strong> maturity of LTROs (long-term refinancing<br />
operations)<br />
Relaxation of collateral requirements<br />
Fixed rate full allotment<br />
5
<strong>EU</strong>: <strong>crisis</strong>, <strong>reactions</strong> <strong>and</strong> <strong>the</strong> <strong>EIB</strong><br />
<strong>EU</strong> response to <strong>the</strong> <strong>crisis</strong><br />
“swap” operations with major CBs<br />
Security Market Purchase - SMP<br />
Covered bond purchases programme I <strong>and</strong> II<br />
Draghi’s: “Do whatever it takes” – OMTs – not utilized yet<br />
Changes in <strong>the</strong> interest rates corridor<br />
Support to sovereigns: BOP / GLF / EFSM / EFSF / ESM to finance<br />
IMF/EC/ECB adjustment programs<br />
Greece:<br />
First programme: roughly <strong>EU</strong>R 73 bn.<br />
Second programme: roughly <strong>EU</strong>R 164 bn.<br />
Purpose: (i) budget financing <strong>and</strong> debt redemptions; (ii) bank recapitalisation;<br />
(iii) debt restructuring – PSI; (iv) debt buyback – DBB; (v) a temporary (<strong>and</strong><br />
returned) facility for credit enhancement of <strong>the</strong> Greek notes<br />
Access to market: 2014<br />
Partial OSI with maturity extension<br />
6
<strong>EU</strong>: <strong>crisis</strong>, <strong>reactions</strong> <strong>and</strong> <strong>the</strong> <strong>EIB</strong><br />
<strong>EU</strong> response to <strong>the</strong> <strong>crisis</strong><br />
Portugal:<br />
Programme amount: roughly <strong>EU</strong>R 78 bn.<br />
Purpose: structural reforms, fiscal consolidation, <strong>and</strong> a financial sector<br />
(recapitalisation).<br />
Access to market: mid-2013<br />
Partial OSI with maturity extension<br />
Irel<strong>and</strong>:<br />
Programme amount: roughly <strong>EU</strong>R 85 bn. including bilateral loans<br />
Purpose: structural reforms, fiscal consolidation, <strong>and</strong> financial sector (recapitalisation)<br />
Access to market: early-2013<br />
Partial OSI with maturity extension<br />
Cyprus:<br />
Programme amount: roughly <strong>EU</strong>R 10 bn.<br />
Purpose: structural reforms, fiscal consolidation, <strong>and</strong> financial sector overhault<br />
Spain:<br />
Programme amount: up to <strong>EU</strong>R 100 bn. – roughly <strong>EU</strong>R 42 bn. disbursed<br />
Purpose: bank recapitalisation<br />
7
<strong>EU</strong>: <strong>crisis</strong>, <strong>reactions</strong> <strong>and</strong> <strong>the</strong> <strong>EIB</strong><br />
<strong>EU</strong> response to <strong>the</strong> <strong>crisis</strong><br />
Structural changes to <strong>the</strong> Union<br />
Streng<strong>the</strong>ned coordination of national fiscal policies<br />
The Six Pack: legislation governing <strong>the</strong> Stability <strong>and</strong> Growth Pact (SGP) initially approved<br />
in 1997 - significant reforms enacted in 2011 referred to as “six-pack”<br />
Streng<strong>the</strong>ned fiscal surveillance<br />
Enforcement provisions of <strong>the</strong> SGP by adding an expenditure benchmark to review countries'<br />
fiscal positions,<br />
Introduction of an early <strong>and</strong> gradual system of financial sanctions<br />
New minimum st<strong>and</strong>ards for national budgetary frameworks<br />
Surveillance of both budgetary <strong>and</strong> economic policies toge<strong>the</strong>r under <strong>the</strong> European Semester<br />
The Two Pack: Entered into force on May 30, 2013 - introduces additional surveillance<br />
<strong>and</strong> monitoring procedures for euro area Member States (MS)<br />
Establishes a comprehensive surveillance regime for euro area MS experiencing (or threatened)<br />
serious financial instability<br />
Requires MS to set up independent bodies in charge of monitoring national fiscal rules <strong>and</strong> to<br />
base budgetary forecasts on independent macroeconomic forecasts<br />
8
<strong>EU</strong>: <strong>crisis</strong>, <strong>reactions</strong> <strong>and</strong> <strong>the</strong> <strong>EIB</strong><br />
<strong>EU</strong> response to <strong>the</strong> <strong>crisis</strong><br />
The Fiscal Compact: it contained within <strong>the</strong> inter-governmental Treaty on Stability,<br />
Coordination <strong>and</strong> Governance (TSCG)<br />
It enhances fur<strong>the</strong>r key provisions of <strong>the</strong> SGP<br />
Requires MS to enshrine in national law a balanced budget rule with a lower limit of a<br />
structural deficit of 0.5% GDP<br />
Increased role of independent bodies, which are given <strong>the</strong> task of monitoring compliance<br />
with <strong>the</strong> national fiscal rules<br />
The TSCG was signed by 25 <strong>EU</strong> MS (all but UK <strong>and</strong> Czech Republic), entered into force on<br />
January 1, 2013<br />
9
<strong>EU</strong>: <strong>crisis</strong>, <strong>reactions</strong> <strong>and</strong> <strong>the</strong> <strong>EIB</strong><br />
<strong>EU</strong> response to <strong>the</strong> <strong>crisis</strong><br />
Streng<strong>the</strong>ned coordination of banking <strong>and</strong> financial sector regulation <strong>and</strong> supervision<br />
Focus on <strong>the</strong> creation of a banking Union, several steps required:<br />
Banking supervision – Single Supervisory Mechanism (SSM)<br />
Common Resolution mechanism<br />
Common Insurance Mechanism – deposit insurance scheme<br />
Basel III: more stringent capital rules will be implemented – November 2010 G-20 – e.g.<br />
countercyclical capital buffers<br />
10
<strong>EU</strong>: <strong>crisis</strong>, <strong>reactions</strong> <strong>and</strong> <strong>the</strong> <strong>EIB</strong><br />
<strong>EIB</strong> capital increase: Compact for Growth <strong>and</strong> Jobs<br />
Both a structural <strong>and</strong> an emergency response:<br />
Crisis response: <strong>the</strong> European Council endorsed a <strong>EU</strong>R 10bn paid-in increase in <strong>the</strong><br />
European Investment Bank (‘<strong>EIB</strong>’) capital from MS<br />
Part of <strong>the</strong> “Compact for Growth <strong>and</strong> Jobs”.<br />
Comprising a range of policies aimed at stimulating smart, sustainable,<br />
inclusive, resource-efficient <strong>and</strong> job-creating growth<br />
As a result, expected lending would increase of 43% or by <strong>EU</strong>R 60bn in <strong>the</strong> period<br />
2013-2015<br />
This additional lending can support total investment of up to <strong>EU</strong>R 180bn<br />
(around ½ percent of <strong>EU</strong> GDP)<br />
<strong>EIB</strong>’s investments remain targeted on critical levers for <strong>EU</strong> growth <strong>and</strong><br />
competitiveness<br />
Innovation <strong>and</strong> skills; SME access to finance; Resource efficiency; <strong>and</strong><br />
Strategic infrastructure<br />
11
<strong>EU</strong>: <strong>crisis</strong>, <strong>reactions</strong> <strong>and</strong> <strong>the</strong> <strong>EIB</strong><br />
<strong>EIB</strong> total assets compared to<br />
o<strong>the</strong>r IFIs (<strong>EU</strong>R bn, 2012)<br />
600<br />
500<br />
400<br />
300<br />
200<br />
100<br />
0<br />
<strong>EIB</strong> IBRD IFC EBRD<br />
Source: <strong>EIB</strong>, Fitch<br />
Total exposure end-2012<br />
<strong>EU</strong><br />
100%<br />
80%<br />
60%<br />
40%<br />
20%<br />
0%<br />
Lending to Member States<br />
Total exposure end-2012 (% of GDP)<br />
<strong>EU</strong><br />
SMEs & intermediated<br />
O<strong>the</strong>r manufacturing<br />
Autom & transp equip<br />
Ref, Mining, Quarrying<br />
Agric, food<br />
Services<br />
Health,social<br />
Education<br />
Telecommunications<br />
Composite infrastructure<br />
Water, sewage<br />
Urban infrastructure<br />
Urban,inter modal tr.<br />
O<strong>the</strong>r transp.<br />
Air transport<br />
Sea transport<br />
Roads, motorways<br />
Railways<br />
Energy<br />
3.4<br />
0 5 10<br />
Source: <strong>EIB</strong><br />
Source: <strong>EIB</strong><br />
Simplified sector split<br />
Exposure end-2012<br />
SMEs<br />
through<br />
banks<br />
<strong>EU</strong>15<br />
<strong>EU</strong>12+1<br />
RDI<br />
FDI<br />
&<br />
o<strong>the</strong>r<br />
Big 4<br />
Small 7<br />
Cohesion 4<br />
Infrastructure<br />
targeting<br />
MS with<br />
higher<br />
needs<br />
<strong>EIB</strong> strengths in <strong>the</strong> <strong>crisis</strong><br />
Increase: >40%<br />
Increased support<br />
of convergence<br />
<strong>and</strong> distressed<br />
member states<br />
Improving competitiveness<br />
through<br />
investments in<br />
research,<br />
development <strong>and</strong><br />
innovation<br />
€ 60bn<br />
Baseline<br />
lending<br />
targets<br />
before<br />
capital<br />
increase<br />
Lending targets<br />
2013‐15<br />
(<strong>EU</strong>R bn)<br />
safeguarding access to longterm<br />
financing addressing<br />
fragmentation <strong>and</strong> deleveraging<br />
Bringing forward of employment<br />
intensive economically <strong>and</strong><br />
financially viable infrastructure<br />
investments<br />
12
<strong>EU</strong>: <strong>crisis</strong>, <strong>reactions</strong> <strong>and</strong> <strong>the</strong> <strong>EIB</strong><br />
<strong>EIB</strong> lending activity in <strong>the</strong> <strong>EU</strong><br />
Note: 2013 targets may be revised in <strong>the</strong> context of <strong>the</strong> Mid‐Year Review due to be approved by Board of<br />
Directors in July. The overall lending envelope target will not be affected.<br />
Source: European Investment Bank Group, Operational Plan, 2013 ‐ 2015<br />
13
<strong>EU</strong>: <strong>crisis</strong>, <strong>reactions</strong> <strong>and</strong> <strong>the</strong> <strong>EIB</strong><br />
Signatures in <strong>the</strong> <strong>EU</strong> <strong>and</strong> 2012 <strong>and</strong> Pre-accession region, initial targets 2013-15<br />
<strong>EU</strong>R bn<br />
70<br />
60<br />
50<br />
40<br />
30<br />
20<br />
10<br />
Exclusive convergence <strong>and</strong><br />
climate<br />
Urban renewal <strong>and</strong><br />
regeneration<br />
Environmental protectiom<br />
TEN Transport<br />
Sustainable transport<br />
Renewable energy <strong>and</strong> EE<br />
Competitive <strong>and</strong> Secure<br />
Energy<br />
Knowledge economy<br />
0<br />
2012 2013 2014 2015<br />
Support to SMEs<br />
Note: 2013 targets may be revised in <strong>the</strong> context of <strong>the</strong> Mid‐Year Review due to be approved by Board of<br />
Directors in July. The overall lending envelope target will not be affected.<br />
Source: European Investment Bank Group, Operational Plan, 2013 ‐ 2015<br />
European Investment Bank<br />
14
<strong>EU</strong>: <strong>crisis</strong>, <strong>reactions</strong> <strong>and</strong> <strong>the</strong> <strong>EIB</strong><br />
Select new initiatives<br />
1. The <strong>EIB</strong> Board of Directors approved a package of measures to increase <strong>the</strong> risk tolerance of <strong>the</strong> Bank, notably<br />
in relation to certain bank counterparts. At <strong>the</strong> same time, efficiency efforts are being implemented to simplify<br />
<strong>and</strong> shorten <strong>the</strong> lending cycle, <strong>and</strong> increased staff resources are being made available to <strong>the</strong> front offices to<br />
streng<strong>the</strong>n <strong>and</strong> fur<strong>the</strong>r support <strong>the</strong> loan origination process.<br />
2. The <strong>EIB</strong> has increased its lending target for ‘Special Activities <strong>and</strong> Special Activity types of operations' to <strong>EU</strong>R<br />
8.3bn*,<br />
<strong>EU</strong>R 6bn of which will be on <strong>the</strong> <strong>EIB</strong>’s balance sheet (compared to <strong>EU</strong>R 1.8bn in 2012).<br />
The remaining <strong>EU</strong>R 2.3bn is made possible by blending <strong>EIB</strong> loans with <strong>EU</strong> funds, where <strong>the</strong> <strong>EU</strong> absorbs part<br />
of <strong>the</strong> risk of a given loan portfolio.<br />
This enables <strong>the</strong> <strong>EIB</strong> to exp<strong>and</strong> activities in vulnerable <strong>and</strong> programme countries, <strong>and</strong> high‐risk sectors, such<br />
as research <strong>and</strong> development projects, e.g.:<br />
Project bond pilot initiative (PBI) to support <strong>the</strong> role of capital markets in financing long‐term<br />
infrastructure<br />
Risk Sharing Finance Facility (RSFF)<br />
Loan Guarantee for TEN‐Transport (LGTT).<br />
3. The Bank has developed new security structures <strong>and</strong> products in some Programme countries, including risk<br />
sharing <strong>and</strong> credit enhancement instruments, e.g.:<br />
In Greece Structural Funds were used to set up a Guarantee Fund dedicated to <strong>EIB</strong> lending in favour of SMEs,<br />
structured on a portfolio first‐loss basis.<br />
<strong>EU</strong>R 500m trade finance facility for <strong>the</strong> first time to support a trade volume of <strong>EU</strong>R 1.5bn per year.<br />
15<br />
* Includes <strong>EU</strong>R 0.5bn for operations outside <strong>the</strong> <strong>EU</strong>
<strong>EU</strong>: <strong>crisis</strong>, <strong>reactions</strong> <strong>and</strong> <strong>the</strong> <strong>EIB</strong><br />
Select new initiatives<br />
4. The Bank has also stepped up its support for SMEs through additional measures:<br />
• It has increased lending targets to SMEs considerably. In 2012 signatures for SMEs increased by<br />
18% to reach <strong>EU</strong>R 12.1bn. The 2013 target for signatures for SMEs was <strong>EU</strong>R 14.1bn. The current<br />
forecast is around 17bn.*<br />
• It is developing new security structures <strong>and</strong> products (e.g. <strong>the</strong> aforementioned Guarantee Fund<br />
<strong>and</strong> trade finance facility in Greece)<br />
• The Commission <strong>and</strong> <strong>the</strong> <strong>EIB</strong> are also working with <strong>the</strong> ECB to develop an <strong>EU</strong> strategy to alleviate<br />
<strong>the</strong> financing constraints for SMEs. The discussions focus on options for reviving <strong>the</strong> structured<br />
credit markets to support SME lending in particular (but not limited to) <strong>the</strong> more vulnerable<br />
Member States. Collaboration is directed at covering two dimensions<br />
(i) sufficient funding for <strong>the</strong> banking sector directed specifically to SME lending <strong>and</strong><br />
(ii) credit enhancement of existing or new SME loan pools so as to reduce distorted credit<br />
margins <strong>and</strong> attract institutional investors in large SME loan pools alleviating important<br />
supply constraints for investments.<br />
• In responding to <strong>the</strong> gap left by <strong>the</strong> withdrawal of institutional investors, <strong>the</strong> Risk Capital M<strong>and</strong>ate<br />
was reinforced <strong>and</strong> established as an open ended, <strong>EU</strong>R 7bn revolving fund managed by <strong>the</strong> EIF on<br />
behalf of <strong>the</strong> <strong>EIB</strong>.<br />
• Streng<strong>the</strong>ning EIF partnerships with national institutions to deliver different equity <strong>and</strong> debt<br />
solutions through a wide range of financial partners across <strong>the</strong> <strong>EU</strong><br />
16<br />
* Includes <strong>EU</strong>R 1.1bn for operations in <strong>the</strong> Pre‐accession region
<strong>EU</strong>: <strong>crisis</strong>, <strong>reactions</strong> <strong>and</strong> <strong>the</strong> <strong>EIB</strong><br />
Select new initiatives<br />
5. Complement <strong>the</strong> Commission’s <strong>and</strong> Member States’ efforts with a dedicated "Skills <strong>and</strong> Jobs ‐ Investing<br />
for Youth" programme to help counteract high <strong>and</strong> rising youth unemployment with two components:<br />
i. "Jobs for Youth" ‐ providing SMEs with better access to finance; <strong>and</strong><br />
ii.<br />
"Investments in Skills" ‐ providing lending to projects investing in <strong>the</strong> skills of young<br />
people, including investments in education infrastructure, training, student loans <strong>and</strong><br />
mobility.<br />
In <strong>the</strong> context of Jobs for Youth, <strong>the</strong> <strong>EIB</strong> is exploring ‐ toge<strong>the</strong>r with partner banks ‐ options to fur<strong>the</strong>r<br />
increase its lending to SMEs –<strong>the</strong> main employer of young people –in order to support employment.<br />
The investments targeted under "Investing in Skills" include <strong>the</strong> <strong>EIB</strong>’s established financing of<br />
investments in schools <strong>and</strong> universities as well as a broad range of training schemes, notably<br />
programmes that scale up <strong>and</strong> improve <strong>the</strong> quality of vocational training in Europe. The focus on jobrelated<br />
skills from secondary to tertiary education is seen as having <strong>the</strong> biggest impact on improving<br />
<strong>the</strong> employability of young people <strong>and</strong> offers <strong>the</strong> best protection against unemployment. The<br />
supported measures also comprise <strong>the</strong> support of mobility schemes for students <strong>and</strong> employees<br />
across <strong>the</strong> <strong>EU</strong>.<br />
6. The <strong>EIB</strong> is looking at fur<strong>the</strong>r means to streng<strong>the</strong>n its lending <strong>and</strong> advisory activities to help project<br />
delivery, speed up disbursements <strong>and</strong> real investment as well as increase Member States capacity to<br />
absorb <strong>EU</strong> resources.<br />
17
<strong>EU</strong>: <strong>crisis</strong>, <strong>reactions</strong> <strong>and</strong> <strong>the</strong> <strong>EIB</strong><br />
<strong>EIB</strong> lending activity in Italy<br />
Italy - <strong>EIB</strong>'s activity by sector<br />
Exposure, end-2012<br />
Percentage<br />
100%<br />
80%<br />
60%<br />
40%<br />
20%<br />
0%<br />
Italy exposure: <strong>EU</strong>R 61.5bn, 3.9%<br />
of GDP<br />
Source: <strong>EIB</strong><br />
<strong>EU</strong><br />
IT<br />
Signature flow<br />
% of GDP<br />
0.7<br />
0.6<br />
0.5<br />
0.4<br />
0.3<br />
0.2<br />
0.1<br />
0.0<br />
2008<br />
2009<br />
2010<br />
2011<br />
2012<br />
2013<br />
2013 estimate<br />
SMEs & intermediated<br />
O<strong>the</strong>r manufacturing<br />
Autom & transp equip<br />
Ref, Mining, Quarrying<br />
Agric, food<br />
Services<br />
Health,social<br />
Education<br />
Telecommunications<br />
Composite infrastructure<br />
Water, sewage<br />
Urban infrastructure<br />
Urban,inter modal tr.<br />
O<strong>the</strong>r transp.<br />
Air transport<br />
Sea transport<br />
Roads, motorways<br />
Railways<br />
Energy<br />
<strong>EU</strong> average for sign/GDP<br />
High level of SMEs lending<br />
– both outst<strong>and</strong>ing <strong>and</strong><br />
flows<br />
Expected ramp-up of <strong>EIB</strong><br />
lending in 2013 comparable<br />
to 2009 <strong>crisis</strong><br />
Strong focus on energy <strong>and</strong><br />
infrastructure (e.g.<br />
motorways)<br />
Expected lending for 2013<br />
as % of GDP well above<br />
<strong>EU</strong> average<br />
18
<strong>EU</strong>: <strong>crisis</strong>, <strong>reactions</strong> <strong>and</strong> <strong>the</strong> <strong>EIB</strong><br />
<strong>EIB</strong> lending activity in Italy<br />
In an economic climate demarcated by fiscal consolidation, tight<br />
financial conditions <strong>and</strong> negative growth, <strong>the</strong> <strong>EIB</strong> can:<br />
improve access to finance for SMEs <strong>and</strong> mid-caps against <strong>the</strong><br />
background of tight credit supply;<br />
support energy <strong>and</strong> transport infrastructure to fill existing<br />
infrastructural gaps, increase cross-border inter-connectiveness<br />
<strong>and</strong> facilitate competition <strong>and</strong> exporting;<br />
increase cross-border inter-connectiveness <strong>and</strong> facilitate<br />
competition <strong>and</strong> exporting;<br />
provide much needed investment in RDI, ICT, education,<br />
renewables <strong>and</strong> water sector;<br />
improve <strong>the</strong> absorption of <strong>EU</strong> structural funds<br />
19
<strong>EU</strong>: <strong>crisis</strong>, <strong>reactions</strong> <strong>and</strong> <strong>the</strong> <strong>EIB</strong><br />
Activity in <strong>the</strong> neighbourhood<br />
20
<strong>EU</strong>: <strong>crisis</strong>, <strong>reactions</strong> <strong>and</strong> <strong>the</strong> <strong>EIB</strong><br />
Activity in <strong>the</strong> Sou<strong>the</strong>rn neighbourhood neighbourhood<br />
‣ <strong>EIB</strong> <strong>the</strong> largest IFI/DFI in terms<br />
of volumes<br />
‣ Focus on access to finance<br />
(AtF), transport <strong>and</strong> energy<br />
Signatures 2007-2012<br />
Cumulative (<strong>EU</strong>R m)<br />
Signatures 2007-2012<br />
Share in sector activity of major IFIs/DFIs (percent)<br />
21<br />
Sources: <strong>EIB</strong>. AtF st<strong>and</strong>s for Access to Finance <strong>and</strong> includes intermediated loans, loans to<br />
industry <strong>and</strong> to services.
22<br />
<strong>EU</strong>: <strong>crisis</strong>, <strong>reactions</strong> <strong>and</strong> <strong>the</strong> <strong>EIB</strong>