Troika launches growth plan for Central and South Eastern Europe
LONDON
Our institutions - the European Investment Bank Group (EIB Group), the World Bank Group and the European Bank for Reconstruction and Development (EBRD) - have today agreed on a new Joint Action Plan, aimed at supporting economic recovery and growth in Central and South Eastern Europe.
The Action Plan, a direct response to the continuing impact of Eurozone problems on the economies of emerging Europe, includes more than €30 billion of joint commitments for the period 2013-2014.
Developed within the context of the Vienna Initiative, the new Joint International Financial Institution (IFI) Action Plan aims to rekindle growth in the region by supporting private and public sector ini- tiatives, including infrastructure, corporate investment and the financial sector.
This initiative is modelled on the successful 2009-2010 Joint IFI Action Plan that supported Central European economies affected by a liquidity crisis in the financial and corporate sector. Under the 2009-1010 Action Plan the IFIs initially pledged a contribution over two years of €24.5 billion, with results exceeding original targets. The programme announced today is different in several respects. Notably the financing will specifically underpin growth by supporting economic restructuring, consolidation and diversification, as well as enhancing long term competitiveness through increased availability of long term credit, but also using injections of equity where necessary and possible, mobilising export trade finance and supporting policy reform.
The EIB Group has agreed to commit a minimum of €20 billion. This support will mainly consist of long term loans to the private and public sector, addressing priority areas such as SMEs, renewable energy and energy efficiency, innovation and convergence. Particular efforts will be made to support the mobilisation of EU grants and leveraging both private and public funds, as well as providing targeted advice. EIB Group President Werner Hoyer: “I strongly welcome the coordinated effort of our institutions. I believe that each one, in its own area of expertise, can contribute to consolidated growth in Central and South Eastern Europe. The EIB, as the bank of the EU, will support growth and employment.