EIB Says Lending Target May Fall If Economy Recovers
Written on September 11, 2009
European Investment Bank President Philippe Maystadt said the EIB’s lending target may be lower in 2010 than this year’s estimate of 70 billion euros ($102 billion) if the economy recovers.
“We expect this year’s target to be met,” Maystadt said today in an interview in Brussels. “As for 2010, we still have to discuss the target. If there’s an economic recovery, less will be needed and we may be able to decrease the amount.” The Luxembourg-based EIB is the European Union’s lending arm.
Earlier, Maystadt told an event in Brussels that “there are still restrictions in lending to small and medium-size companies” in Europe. “There’s some easing, but banks are still more restrictive than before the crisis,” he said.
The European Central Bank is flooding banks with cheap cash in the hope they will lend it on to companies and households and get them spending again. While Europe is showing signs of emerging from its worst recession in more than six decades, ECB policy makers signaled today that they intend to leave emergency lending measures in place into 2010 to support the recovery.
“We’ve hit the bottom,” Maystadt said about the economic slump. “But it’s difficult to predict today the pace of growth in 2010.”
Maystadt noted that the EIB’s lending target of 70 billion euros this year compares with a volume of 45 billion euros in 2007. “This additional volume should be dedicated to small and medium-size enterprises, energy” and development, he said.
Among its lending efforts, the EIB is providing 11 billion euros in a program along with the World Bank and the European Bank for Reconstruction and Development to grant financing to central and east European banks and businesses. The EIB also is providing financing for green-transport projects including cleaner cars.
Filed in: management.