Small and medium businesses can begin accessing a €800m loan scheme from next month, after a multi-funded strategic bank was launched by the Government.

For the first time in almost a decade there are signs that our banking system is getting back to normal, beginning to operate within proper parameters and finally lending to businesses, home buyers, and other credit worthy customers.

State-owned AIB will extend €200m in funding to SMEs through a joint venture with the European Investment Bank (EIB).

The head of the European Investment Bank has expressed his admiration for Irish people, saying that the country must be the "lighthouse of a return to stable growth" in Europe.

The European Investment Bank has said its shareholders, the EU's 27 member states, have unanimously approved a €10bn capital increase, as agreed by national leaders last year.

Ireland hopes to secure up to €1bn per year in funding from the European Investment Bank after EU leaders agreed last week to boost the bank’s capital, Finance Minister Michael Noonan said yesterday.

The Government is hoping to double the amount of funds it receives annually from the European Investment Bank to €1 billion for infrastructure projects.

The Government has signed a deal with the European Investment Bank that will cover a €100m school-building programme.

The Head of the European Investment Bank is in Dublin today for talks with the Government on investment in projects.

Irish banks are in line to receive €300 million to lend to SMEs at preferential rates from the European Investment Bank (EIB) and other projects such as wind energy generation are in the pipeline.

THE death toll from an outbreak of killer bacteria centred on Germany jumped to at least 30 as EU and Russian leaders got ready to cross swords over Moscow’s ban on EU vegetables.

THE EU was split over its response to the violence in Libya, with several countries warning against taking sides while others demanded stronger measures, including sanctions against Muammar Gaddafi.

EUROPE voiced fears last night about a new wave of illegal immigration after Libya threatened to break its cooperation on controlling the flow and more Tunisians landed in Italy.

INVESTORS are taking a more favourable view of the Irish economy due to Government action in the budget, resulting in a fall in the cost of state borrowing.

THE German government has confidence Ireland will emerge through the economic crisis without needing a bailout, the country’s European Affairs Minister has said.

The European Union has promised at least €400m in long-term aid for quake-hit Haiti.