These loans add to the EUR3.6 billion in loans approved since last December 2008 for European car and truck makers. Further loans planned for submission to the board in May and June 2009 will reach an even wider range of beneficiaries, including component suppliers, and bring total approved lending to the motor industry to over EUR7 billion since last December 2008, when the EIB launched a support package to aid Europe’s economic recovery from the current crisis.
The facility is part of the EIB’s response under the European Economic Recovery Package. The balance, which is also aimed at safer, smaller and more fuel-efficient cars, will be provided under the EIB’s convergence objective to support Europe’s less affluent regions, and its external lending mandate for Asia and Latin America.
The loans include EUR400 mllion to Nissan’s European operations to develop and build more fuel-efficient vehicles in the UK and Spain, and GBP340 million (EUR366 million) to Jaguar Land Rover to help cut vehicle emissions. A loan was also approved for a Volkswagen plant in India, which will produce small cars that meet tougher emissions requirements ahead of their introduction in major Indian cities from 2010.
The EIB has signed loans with BMW, Renault and Volvo Trucks since they were approved at the last board meeting on March 12, 2009.
Under the broad economic recovery package announced in December 2008, the EIB is raising its total lending by EUR15 billion per year for both 2009 and 2010 compared to previous years. The increase is directed at three main areas: helping small and medium-sized enterprises (SMEs) and mid-cap firms, supporting Europe’s convergence regions and contributing to the fight against climate change (including the ECTF). The EIB is already well on its way to achieving the objectives set by EU member states.
