12 June 2013
EIB to provide financial support to redress damage caused by the current flooding in Europe
The European Investment Bank (EIB) stands ready to provide financial support to redress damage caused by the current flooding in Europe. EIB President Werner Hoyer commented: “The EIB is considering how it could best help and which financing instruments it could use to provide support for urgent reconstruction programmes at local and regional levels as well as for future flood prevention schemes.” The President offered the support of the Bank in writing to the German Chancellor Angela Merkel, to Austrian Chancellor Werner Faymann, to Slovak Prime Minister Robert Fico, to Czech Prime Minister Petr Necas and to Hungarian Prime Minister Viktor Orban.
In 2002, when a similar level of flooding hit the same area, the EIB Board approved a total of EUR 1 billion EUR, distributed between the relevant countries based on final demand. President Hoyer signalled, “the EIB is willing to go beyond the amount from 2002, depending on investment demands and if needed”. EIB financing include substantial amounts covering up to 100% of costs emergency components, wide coverage of damaged sectors, both public and private and, simplified procedures and very long tenors (up to 30 years). Any support by the EU Bank will complement national and regional initiatives in the face of business interruption and structural damage to infrastructures.
President Hoyer also noted, “the EIB will in any case continue promoting risk management programmes alongside emergency measures” as flood risk management programmes, partly financed by the EIB in response to the flood in 2002, seem to have mitigated the impact of the current flooding.
The European Investment Bank (EIB) is the long-term lending institution of the European Union owned by its Member States. It makes long-term finance available for sound investment in order to contribute towards EU policy goals.
Christof Roche, email@example.com, +32 479 650 588