The board of governors of the European Investment Bank (EIB), formed by the ministers of Economy and Finance of the European Union (EU), meets next Friday to gauge the possibilities that Nadia Calviño has of leading the institution, in charge of financing projects that contribute to the Union’s objectives. The current vice president of the Spanish Government and Minister of Economy would already have the necessary support to occupy the presidency of the EIB, as La Vanguardia has been able to confirm through diplomatic sources.
The institution, created in 1958 and based in Luxembourg, has all EU countries as shareholders, whose contributions are calculated based on the economic weight of each member state. If elected as president, Calviño would take over from the German Werner Hoyer, who retires on December 31.
The bank, considered the investment arm of the EU, has the mission of contributing to the balanced and stable development of the Union’s internal market through the financing of projects that help the development of the most backward regions, the modernization or reconversion of companies. or to the creation of new activities that must be of common interest in several member countries. Furthermore, it must support the execution of actions outside the Union in favor of development cooperation policy, although nearly 90% of the credits it gives are granted in the EU.
The EIB, one of the largest supranational lenders in the world, is financed primarily on the capital markets, mainly through the issuance of bonds, so the money does not come out of the EU budgets. It grants loans of over 25 million on favorable conditions to clients of all types, as well as combined financing with other funds and subsidies from the Union, public bodies and philanthropic institutions. The institution usually finances a third of each project and reaches a maximum of 50% of the capital necessary to materialize it.
For loans below 25 million, it opens lines of credit to financial institutions, through which money reaches creditors. Likewise, it offers advice and technical assistance to achieve maximum profitability.
The bank is managed and directed by a council of governors, composed of the ministers of Economy and Finance of the member states, which focuses on defining the general lending policy and ensuring its execution. However, the operations must be approved by the board of directors, chaired by the president of the EIB, and which has 28 members appointed by the countries of the Union and one by the European Commission, as well as 31 substitute administrators. While the management committee is responsible for managing current affairs and the audit committee checks that operations are carried out correctly.
