Company attributes
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It was established in 1958 with the aim of providing loans for the construction and reconstruction of facilities that are of interest to the EU countries. The authorized capital is formed from the contributions of the participating countries and amounts to 248.8 billion euros. The Bank provides loans and guarantees for the implementation of such projects:
- development of underdeveloped regions;
- aimed at the modernization or transformation of enterprises or the development of new activities that have contributed to progress towards the creation of a common market;
- which are of common interest to several Member States which, due to their scope or nature, cannot be entirely financially separate Member States.
- By issuing bond loans in the international money market and in the national money markets of the countries of the European Union, the attracted funds of the bank are formed.
The governing bodies of the European Investment Bank are the Board of Governors, the Directorate and the Board. The Governing Council is made up of EU finance ministers. He determines the general credit policy, considers and approves annual balance sheets, and makes changes to the authorized capital. When setting interest rates, the Directorate decides on raising funds, providing loans and guarantees. Operational management is carried out by the President and his five deputies. The location of the European Investment Bank is the European Quarter of Luxembourg.
For profitable projects, regular loans are provided, for low-profit projects - preferential ones. Up to 70% are loans for regional development of less developed areas. The total amount of loans granted is 77 billion euros (in 2014). Bank loans cover part of the cost of the project, supplementing the borrower's own capital (usually less than 50%).
Spheres of use of credits — first of all power, transport and telecommunications. The European Investment Bank also provides preferential loans at the expense of EU funds as a technical manager. Bank loans are provided in several currencies. The interest rate on "mixed" loans is determined on the basis of the weighted average cost in funds raised in these currencies in international or national capital markets.
