The European Investment Bank (EIB) is lending CZK 2 billion (approx. EUR 76 million) to the South Moravia Region for co-financing the Region’s priority infrastructure projects supported by the EU Structural and Cohesion Funds over the period 2007 – 2013.
With this second loan to the Region, the EIB will co-finance mainly regional infrastructure schemes in the areas of roads, education, health, social care, tourism and R&D. Some investments will help to increase the energy efficiency of public buildings.
The EIB and the South Moravia Region entered into successful cooperation when a first loan of CZK 1.2bn was signed in 2005, focusing on rehabilitation of the regional road network, in particular. The various investments, part-financed by the loan, are being implemented satisfactorily and according to schedule.
The new loan is building on this positive experience and will further reinforce the Region’s capacity to carry out substantial investment activity.
The EIB supports the development of Czech regions and municipalities by improving their access to long-term finance provided on favourable terms. Since 2005, the Bank has provided loans to 7 Czech Regions and 6 cities beside the capital city of Prague, amounting to EUR 778.7 million.
Background:
The EIB, the European Union’s bank, finances economically viable investment projects that contribute to the integration, balanced development and economic and social cohesion of the EU Member States. Since 1990 the EIB’s lending in the Czech Republic has exceeded EUR 11.6 billion. The Czech Republic is the second largest EIB borrower by volume among the Member States that joined the Union in 2004 and 2007.
The Czech Republic is entitled to EUR 23.6 billion from EU Funds in the financing period 2007 – 2013. Through its various loan products the EIB can provide the financial resources needed for co-financing projects with the EU Funds, so contributing to the successful implementation of projects in line with the priorities of Czech regional policies.