The board of directors of the European Investment Bank (EIB) has backed the creation of a €25 billion ($27 billion) European COVID-19 guarantee fund.
The fund will enable the EIB Group to scale up its support for European companies up to an additional €200 billion ($218 billion), with a focus on small and mid-size enterprises (SMEs).
The guarantee fund envisages a contribution from all 27 E.U. Member States and will also be open to contributions by third parties, for example from the E.U. budget. The fund will be formally established as soon as Member States accounting for at least 60 percent of EIB capital have made the necessary commitments.
“Europe needs an ambitious pan-European response to the pandemic,” said Werner Hoyer, president of EIB. “We can now move very fast indeed, work hand in hand with national and EU partners, and ensure that support reaches the economy wherever it is most deeply and urgently needed.”
The European COVID-19 gu
