The European Investment Bank, the European Union's long-term financing institution is lending GB£ 250 million (EUR 398 million)(1) to Barclays Bank to support investment by small and medium sized enterprises. The finance contact was signed in London today by EIB Vice President, Peter Sedgwick and Barclays Chief Executive Business Banking, David Roberts.
Barclays will use the funds to support investments by SMEs in industry, tourism and services, and for small and medium sized infrastructure, energy and environmental protection projects, in the UK and other EU countries. The financing arrangement forms part of a long-standing relationship between Barclays and the EIB.
Peter Sedgwick said: "The purpose of this global loan is to strengthen the European Investment Bank's (EIB's) efforts in the UK to provide medium to long-term finance, at a very competitive rate, to small and medium-sized business customers. The finance will be focused on helping to increase the productivity and competitive capacity of SMEs and so contribute to growth and employment".
The European Investment Bank, the European Union's long-term lending institution, finances capital investment furthering EU integration, in particular: regional development; trans-European networks in transport, telecoms and energy; industrial competitiveness and integration; SMEs; environmental protection; and energy security. It also operates outside the EU within the framework of the EU's co-operation external policy. Owned by the Member States, the EIB raises its funds on capital markets (AAA issuer). In 1999, the EIB lent some EUR 30 billion, of which £2.2 billion in the UK.
(1) 1 EUR = 0.613400 GBP.