The European Investment Bank (EIB) signed a Framework Agreement with the LAO People's Democratic Republic in Vientiane. Mr. Somdy Douangdy, Vice Minister of Finance, and Mr. Jean-Louis Biancarelli, EIB Director General, signed the framework agreement for financial cooperation between the European Investment Bank and Lao PDR. This agreement sets the general conditions under which the EIB may operate in support of investment projects of mutual interest in the Lao PDR. It encompasses elements stemming from the cooperation policy of the European Union with the Lao PDR.
In Asia and Latin America (ALA), the EIB may lend up to EUR 2.48 billion during 2000-2006 to support capital investment projects implemented by subsidiaries of EU companies or joint-ventures between EU and ALA firms, or investment that results in environmental improvements or fosters regional integration. The EIB was set up in 1958 to finance investment furthering EU integration. It lends for regional development, infrastructure, energy, industry and environment. Outside the EU, the Bank contributes to the European development co-operation policy in some 130 countries in Central and Eastern Europe, the Balkans, the Mediterranean region, Africa, the Caribbean and the Pacific, Asia and Latin America.
In 2002, the EIB provided loans totalling some EUR 40 billion. The Bank borrows on the capital markets the funds for its lending. Its bonds have regularly been rated "AAA" by the leading rating agencies. The EIB can pass on to project promoters the excellent conditions it obtains on the markets. The EIB may finance up to 50 percent of project cost. On average it provides one third of the funding and co-finances investments with other institutions.