Economy received €1bn support in 2009 from EIB

THE European Investment Bank provided €1 billion in financial support to the economy in 2009 more than double the 2008 figure that it contributed to infrastructure and SME projects in 2008.

It also said it would reinforce support for small and medium-sized businesses in close co-operation with the country’s banks including AIB and Bank of Ireland.

Of the €260 million it allocated for the SME sector last year two-thirds of the funding has been drawn to date. That wasn’t unusual, despite the current climate, said Plutarchos Sakellaris, EIB vice president responsible for Ireland, at a news conference in Dublin.

EIB supports investment projects only and has to be satisfied each company plan meets their strict criteria.

That has resulted in a low bad debt charge over the year. Mr Sakellaris said the bank has suffered virtually no writeoffs on its Irish investments since the downturn. “We are confident that industry, transport, social infrastructure, health and education will continue to benefit from EIB support in coming years,” he said.

He confirmed that the €500m in funding allocated to the Dublin Metro project will be put to the board of the bank shortly for approval.

“This key piece of transport infrastructure will provide a 19km link from Dublin, via Dublin Airport, to Fingal County,” he said.

Dublin Metro was key to the creation of a fully integrated public transport network in the metropolitan area of Dublin, he said.

Mr Sakellaris is due to meet Finance Minister Brian Lenihan, governor of the Central Bank, Patrick Honohan, Transport Minister Noel Dempsey as well as officials from the Financial Regulatory Authority during his visit to Dublin.

On future funding he said the bank will this year lend at least €450m to Ireland for social and economic cohesion. Since 2000 the EIB has lent over €5bn for key capital investment here whose main focus was on transport (33%), and energy sectors (37%).

Last year was a record year for EIB lending in the energy sector, with €500m signed for the EirGrid interconnector and ESB onshore wind farms.

A further allocation of €197m for the Bord Gáis Whitegate Combined Cycle Gas Turbine project is expected to be completed over the coming weeks, he said.