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European Law Monitor newsEIB Support of PLN 200 Million for Development of Local Infrastructure in Poland

The European Investment Bank (EIB) participates with PLN 200 million in an issue of public sector covered bonds to finance small- and medium-scale projects implemented by public sector entities in the fields of infrastructure, environment, energy, health and education. This substitute of an intermediated loan is backed by loan receivables of BRE Bank Hipoteczny S.A.

This so far unique operation increases the number of EIB partner financing institutions providing intermediated EIB loans in Poland and it broadens the possibilities of the EIB support in favour of the modernisation of local infrastructures throughout the country. The EIB involvement is envisaged to generate positive effects both in terms of increasing access to longer term funding and in terms of overall financing costs. It is also anticipated that, in some cases, the Bank´s involvement will provide an additional source of co-financing of Polish priority programmes financed by the EU Funds, thus enhancing the speed of their implementation.

To increase the access of Polish municipalities and other public sector entities to long term finance, the EIB joins its forces with well established financing institutions that know the local market, have public sector entities as their customers and have a well developed network of branches. EIB intermediated loans to partner banks have been developed as a successful tool for providing long-term funding for financing smaller projects up to 50% of their total costs.

Background information on the role of the EIB:

The prime objective of the EIB, the European Union´s long term financing institution, is to contribute towards the integration, balanced development and economic and social cohesion of the Member States by financing sound investment.

In Poland, as in the other EU Member States, the European Investment Bank supports investment projects in order to reduce regional development disparities, strengthen economic competitiveness and improve the living standard and quality of life. Since 1990, the Bank has provided funds amounting to some EUR 14 billion to projects promoting European objectives in Poland.

For further details, please contact Mr DuÅ¡an Ondrejička, ,
tel.: +352-4379-3334 or visit the EIB site: /