EIB lends 3 bn euro to European manufacturers

Publication date: 13 March 2009

EIB lends 3 bn euro to European manufacturers

The Board of Directors of the European Investment Bank (EIB) officially approved, on 12 March, loans amounting to some €3 billion for car and truck manufacturers in Europe. The loans are being made to companies like BMW, Daimler, Fiat, PSA Peugeot- Citroën, Renault, Scania, Volvo Cars and Volvo Trucks. They are primarily intended to improve fuel efficiency and reduce CO2 emissions from cars.

Additional loans - which will “further broaden the range of beneficiaries and countries targeted by EIB support” – are expected to be approved by the EIB in the coming months, with proposals that will be reviewed by the Board of Directors in April, May and June. The EIB’s lending to the automotive
sector since December 2008, when it adopted a broad support programme to stimulate economic recovery, will then exceed €7 billion.

ECTF

The bulk of this funding – around €4.6 billion – is provided under the European Clean Transport Facility (ECTF), which is part of the EIB’s response to the European economic recovery plan. It aims to cut CO2 emissions from cars through research, development and innovation and the production of cleaner and more fuel-efficient cars. The European Automobile Manufacturers Association (ACEA) estimates that demand for EIB loans from manufacturers could top €15 billion in 2009 and a similar amount in 2010. The ACEA has called for the opening of a low-interest lending facility in the amount of €40 billion.

Source: Europolitics