MICROCAPITAL BRIEF: European Investment Bank (EIB), Government of Luxembourg Sign Memorandum of Understanding to Provide $4.5m in Grants to Microfinance Institutions (MFIs) in African, Caribbean, Pacific Countries

The Luxembourg-based European Investment Bank (EIB), the long-term lending bank of the European Union (EU), and the Government of Luxembourg recently signed a memorandum of understanding (MoU) to provide grants totaling EUR 3.6 million (USD 4.5 million) to unspecified microfinance institutions (MFIs) in Africa, the Caribbean and the Pacific. This is the fourth such MoU between Luxembourg and EIB, with the prior three totaling EUR 8 million (USD 9.91 million) in grants provided to 25 microfinance projects across 17 countries.

Werner Hoyer, President of EIB, stated that “The new MoU will allow us to continue promoting responsible microfinance as a powerful tool in financial inclusion and sustainable economic development.”

The total annual lending portfolio of EIB was EUR 71.7 billion (USD 95.8 billion) as of 2013.

By Ananya Tiwari, Research Associate

About European Investment Bank (EIB)

The European Investment Bank (EIB) was created in 1958 and serves as the long-term lending bank of the European Union as of 2014. In addition to supporting projects in EU member states, its main priorities include financing investments in likely future member states and EU partner countries, principally in the area of small and medium-sized enterprises. According to its website, “the EIB operates on a non-profit maximizing basis and lends at close to the cost of borrowing.” The total annual lending portfolio of EIB was EUR 71.7 billion (USD 95.8 billion) as of 2013.

Sources and Additional Resources

[1]EIB Press Release, http://www.eib.org/infocentre/press/releases/all/2014/2014-254-5th-european-microfinance-award-and-new-memorandum-of-understanding-between-the-luxembourg-government-and-the-eib.htm

MicroCapital October 15, 2014, MICROCAPITAL BRIEF: African Development Bank (AfDB), Asian Development Bank (ADB), European Bank for Reconstruction and Development (EBRD), European Investment Bank (EIB), Inter-American Development Bank (IDB), World Bank Group (WBG) Issues Joint Statement on Climate Finance, https://www.microcapital.org/microcapital-brief-african-development-bank-afdb-asian-development-bank-adb-european-bank-for-reconstruction-and-development-ebrd-european-investment-bank-eib-inter-american-development-b/

MicroCapital, July 26 2013, MICROCAPITAL BRIEF: European Investment Bank (EIB) Loans $92m to National Microfinance Bank (NMB) of Tanzania for Micro-, Small, Medium-sized Enterprises, https://www.microcapital.org/microcapital-brief-european-investment-bank-eib-loans-92m-to-national-microfinance-bank-nmb-of-tanzania-for-micro-small-medium-sized-enterprises/

MicroCapital Universe Profile: European Investment Bank (EIB), https://www.microcapital.org/microfinanceuniverse/tikiindex.php?page=European+Investment+Bank+%28EIB%29

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