How much could the EIB provide to SMEs affected by the pandemic?

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The European Investment Bank Could Provide Up To €40 Billion Immediately to Support Small and Medium-Sized Enterprises

The European Investment Bank (EIB) has indicated it could immediately mobilise between €28 billion and €40 billion to assist small and medium-sized enterprises (SMEs) impacted by the coronavirus pandemic. This financial support is intended to address the immediate and widespread economic damage resulting from measures taken to contain the virus. The bank has stressed the need for a robust European response to the crisis, suggesting that without significant intervention, the economic and financial situation could reach a critical juncture.
Immediate Funding Mobilisation

An initial sum of €28 billion could be generated by re-prioritising and re-purposing funds already within the EIB's existing pipeline. This includes redirecting some resources currently allocated as guarantees for the EU-leveraged Investment Plan for Europe (EFSI) scheme. This strategic reallocation aims to make capital available swiftly to businesses facing immediate financial strain.
Additional Leverage for Further Support

Beyond the initial €28 billion, an additional €12 billion could be raised through leveraging a further €1.5 billion. This leverage would be achieved by optimising the risk management of both the EU budget and the EIB's balance sheet, operating under the framework of the EFSI scheme. This mechanism allows for a more efficient use of available capital to expand the total support package.
The Need for a Comprehensive European Response

EIB President Werner Hoyer communicated in a letter to EU finance ministers that the economic activity across Europe is experiencing an abrupt shutdown due to government efforts to curb the spread of the virus. He emphasised that the economic damage is both immediate and pervasive, highlighting that the financial dynamics ahead are approaching a tipping point. Hoyer called for a united European action, suggesting that a "whatever it takes" approach is necessary to demonstrate Europe's value during this crisis and to prevent widespread insolvencies.

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How much could the EIB provide to SMEs affected by the pandemic?

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