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Confindustria Italy Conference

EIB Financial Instruments and Support to Investment Projects

Belgrade, 15 April 2013

Andreas BeikosHead of Office

European Investment BankWestern Balkans Representative Office in Belgrade

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EIB Group:EIB : European Union’s financing institution

Created by the Treaty of Rome in 1958 as the long-term lending bank of the EUShareholders are the 27 Member States of the EUPolicy driven Bank: raises funds on the capital markets which it lends on favourable terms to projects furthering EU policy objectives Operates on a non-profit maximising basis and lends at close to the cost of borrowing AAA rating

EIF : EIB Group’s specialist vehicle for VC and SME guaranteesEstablished in 1994 Shareholders are the EIB, European Union and commercial banksActs as a “fund of funds” by acquiring holdings in venture capital funds (VCF) which take equity participations in SMEsExtends guarantees to the banking community to foster the provision of medium and long-term loans to SMEsAAA rating

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EIB Signatures 1958-2011

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Signatures and disbursements

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Pre-accession Countries include:Candidate Countries: Croatia, Iceland, the Former Yugoslav Republic of Macedonia, Montenegro, Serbia and Turkey. Potential Candidate Countries: Albania, Bosnia and Herzegovina, Kosovo.

Lending (signatures) in 2012: EUR 52.2bn

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(Of which EUR 671m in the Western Balkans)

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Outside the Union:

Private sector development

Infrastructure development

Security of energy supply to EU

Environmental sustainability (RE + EE)

Western Balkans: EIB operates under the Pre-Accession EU Mandate (given by EC to EIB) and the Pre-Accession Facility (at EIB own risk)

EIB Priority Objectives

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EIB group strategy in the Western Balkans

• Long term loans (public/private borrowers + SMEs)

WBIF (Technical assistance and grant support)

EDIF (Venture capital for SMEs)

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Serbia: the main beneficiary of EIB loans in the Western Balkan Region

circa EUR 4.0 bn  

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EUR M 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 Total

Approvals 66 267 198 215 239 290 220 150 1359 835 335 135 4309

Signatures 66 267 162 190 149 250 134 170 893 690 711 275 3957

Disbursements 0 57 66 65 85 136 148 98 169 317 576 539 2256

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EIB Products

In the Western Balkans, the EIB operates primarily through:

- Direct loans to projects generally with a cost above EUR 25 million

- Intermediated loans channeled through intermediary banks (credit lines to banks), whereby intermediaries are obliged to transfer the financial benefits from EIB resources to SMEs and municipalities

- Currently, existing credit lines for SMEs and municipalities in the region amount to EUR 2 billion

- Framework loans to central and local public authorities for projects of up to EUR 50 million

- The EIB contributes to the European Fund for Southeast Europe (EFSE - www.efse.lu) that provides sustainable financing to micro and small enterprises and to the Green for Growth Fund South East Europe (for RE and EE - www.ggf.lu)

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SME financing: A key priority for the EIB

SME financing has been reinforced as one of the priority objectives of the EIB Group since 2005

The role of the EIB Group is to facilitate access to finance for SMEs at better financial conditions:

• channel increased funding sources and intensifying our partnership with the banking sector

• provide and develop a wider range of products

SMEs can find the list of EIB financial intermediaries in Western Balkans, including contact details, on EIB website.

www.eib.org/about/news/the-intermediary-banks-and-financing-institutions-for-credit-lines.htm

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EIB Loan for SMEs

SME SME SME SME SME SME

EIB Loan For SMEs

Favorable interest rate loans

Financial Intermediary (lending to SMEs)

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WBIF

Innovative blending instrument developed jointly by the EIB, European Commission, EBRD, CEB and other donors.

Blends grants and loans for preparation and financing of priority projects in the framework of the EU Pre-Accession process.

Since December 2009, 280 million Euros grants for 138 projects. EUR 7.7 bn of loans committed, of which EUR 2.3 bn signed.

Of these, 27 projects were supported in Serbia, benefitting from EUR 34 million grants.

In 2012, 31 projects approved, providing EUR 59 m grants (EUR 27 m from the Commission. EUR 1.4 bn of loans were committed.

In 2012 in Serbia 3 projects were approved for 3.2 million.

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Western Balkans Enterprise Development & Innovation Facility (EDIF)

Joint initiative of EC, EIF and EBRD within the context of Western Balkans Investment Framework

WB Beneficiaries, IFIs and Donors are also participating

An initial EUR 142m to utilise innovative financial instruments for SME Access to Finance Facility

Pillars

Two Equity funds to pursue equity investments in innovative and high growth SMEs

A Guarantee Facility to guarantee SME loans

Technical Assistance component for regulatory reforms aiming at SME access to finance

Perspectives 2013Serbia

New APEX Loan for SMEs operation through RoS (EUR 500m requested)Road rehabilitation and safety (EUR 100m) (EIB/EBRD/WB co-financing)SMEs (Crédit Agricole EUR 50 m)

FYROMSMEs (Macedonian Bank for Development Promotion – amount tbc).

BiHMotorways (Banja Luka-Doboj EUR 100m) (EIB/EBRD co-financed)SMEs (EUR 60m)Electricity Distribution (EUR 60 m).

Montenegro SMEs (SocGen EUR 20 m)Road rehabilitation and By-passes (EUR 30m).

AlbaniaVlore By Pass (EUR 18m). (EIB/EBRD/IPA co-financed)

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Operations signed since 2001(excluding financial institutions)

Name of project Date signed Amount in EUR MUrgent Transport Rehabilitation Dec-01 66Railways Rehabilitation Mar-02 85Road Rehabilitation Jul-02 95Power Sector Reconstruction Nov-02 67Belgrade Urban Renewal Jun-03 90Emergency Health Oct-03 50EPS – Power System Control Oct-03 22European Roads Project – B May-04 120Municipal Water Jun-04 25Schools upgrading May-05 25Air Traffic Control Jun-05 34Clinical Centres Dec-06 80Railways Rehabilitation II – A Dec-06 80Roads and Bridges Rehabilitation B2 Jul-07 33Gazela Bridge Rehabilitation Jul-07 33Belgrade by-pass Oct-07 60European Fund for South East Europe Nov-07 7.7Municipal and Regional Infrastructure Dec-08 50Clinical Centers / B Dec-08 70EMS Network Upgrading Jun-09 24.5Municipal Infrastructure B Jun-09 25Corridor X E 75 Motorway Oct-09 314Belgrade City Sava Bridge Dec-09 70Public Sector R&D Mar-10 200School Modernisation Programme Jun-10 50Belgrade bypass B Sept-10 40Corridor X (E-80) Motorway Phase I Nov-10 265EPS Electronic Meters Nov-10 40Belgrade City Sava Bridge /B Nov-10 90Fiat Small Cars Serbia May-11 500Upgrading Judiciary Buildings Oct-11 15

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THANK YOU

Andréas Beikos

Head of Representative Office for the Western Balkans

European Investment Bank

E-mail: a.beikos@eib.org

Tel: +381 11 312 1756

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