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10/04/23 1European Investment Bank
Western Balkans in 2020 – Overcoming the Economic Crisis and Developing Competitive
Economies
Sarajevo, 25 February 2010
Western Balkans Investment Framework (WBIF) – a new approach to financial support in the region
MASSIMO CINGOLANIDeputy Head of Division – General Directorate for Lending in Europe
10/04/23 2European Investment Bank
Serbia decomposition of GDP growth in domestic and foreign components
-7.5%
-5.0%
-2.5%
0.0%
2.5%
5.0%
7.5%
10.0%
12.5%
15.0%
Data source: Calculations on World Bank up to 2008 and IMF after
-28%
-21%
-14%
-7%
0%
7%
14%
21%
28%
35%
Real GDP
Domestic demand
Foreign demand
Real GDP 4.5% 4.8% 4.2% 2.5% 8.4% 6.2% 5.7% 7.5% 5.6% -3.0% 1.5% 3.0% 5.0% 5.5% 5.5% 5.0%
Domestic demand 7.4% 7.5% 24.8% 20.7% 33.0% 25.8% 20.1% 25.7% 25.0% 9.2% 12.4% 12.0% 11.8% 10.9% 8.3% 5.6%
Foreign demand -2.9% -12.9 -20.7 -18.8 -24.0 -15.4 -13.7 -18.2 -18.9 -11.5 -10.8 -8.4% -6.4% -5.0% -2.5% -0.4%
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
11
1
1
GDP
IMEXGDP
GDPDDGDPGDP
Source: A. Brunet "A pertinent Analytic Method to Correctly Measure Contributions to Growth in Gross Domestic Product"
Paneoeconomicus, 2009, 3, pp. 397-408
FDDDIMEXGICGDP
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EIB Products
In the Western Balkans, the EIB operates primarily through:
- Direct loans to final beneficiaries for projects with a cost above EUR 25 million
- Intermediated loans channeled through intermediary banks, whereby the intermediary is obliged to transfer the financial benefits from EIB resources (lower interest rates and longer maturities) to SMEs and municipalities (projects have a cost between EUR 40.000 and EUR 25 million); intermediated loans to Mid-Caps (projects above EUR 50 million)
- Framework loans to central and local public authorities for projects of up to EUR 50 million
Currently, the existing credit lines in the region amount to EUR 2 billion, out of which more than half are yet to be disbursed
In addition, in collaboration with the EU Commission, SMEs and public authorities can also benefit from a combination of EIB loans and Commission grants (SME Finance Facility, Municipal Finance Facility, Energy Efficiency Finance Facility)
The EIB contributes to the European Fund for Southeast Europe (EFSE) that provides sustainable financing to micro and small enterprises and to the South East Europe Energy Efficiency Fund (SE4F)
10/04/23 4European Investment Bank
EIB Activity in Western Balkans & Croatia from 2004-2009
EUR MEUR M
0
250
500
750
1000
1250
1500
1750
2000
2250
2500
2750
EUR M
2004 2005 2006 2007 2008 2009
EIB Activity in the Western Balkans & Croatia
Approvals
Signatures
Disbursements
EUR M 2004 2005 2006 2007 2008 2009 TotalApprovals 556 702 804 869 677 2541 6149Signatures 460 459 683 773 747 1671 4793
Disbursements 190 264 476 457 529 586 2502
10/04/23 5European Investment Bank
2009 Activity
In 2009, contracts signed in the Western Balkans and Croatia for EUR 1.68 billion (EUR 1.26 billion in WB). Signatures in all countries of the region apart from Kosovo (under UNSCR 1244).
Strong increase in Loans to SMEs (EUR 700 million, through 14 operations) & public infrastructure. New sectors and new types of operations.
Disbursements of EUR 586 million in 2009 from EUR 529 million in 2008 (EUR 370 m and EUR 315 m without Croatia).
Launch of Western Balkans Investment Framework, and development of its activities together with EC, EBRD and CEB.
Implementation of Western Balkans Facility (EIB provided EUR 1 million), contribution to launch of EC Facilities (IPF-TA and IPF-MW).
10/04/23 6European Investment Bank
RESPONSES TO THE FINANCIAL DOWNTURN2009 EC approved IPA Multi-Beneficiary Crisis Response Package EIB involved in: Private Sector Support Facility & Energy Efficiency Fund
EIB launch of Loan for SMEs product in the Western Balkans GLs + Loans for SMEs:
2010EIB proposals to package financial products addressing SMEs’ access to finance and the regional dimension of SMEs’ financing
0250500750
1000125015001750200022502500
EUR M
Approvals
Signatures
Disbursements
Approvals 115 175 185 210 415 1265 2365
Signatures 45 145 155 160 385 1051 1941
Disbursements 33 25 86 171 182 236 733
2004 2005 2006 2007 2008 2009 Total
10/04/23 7European Investment Bank
2010 Outlook
Consolidation of the 2009 high level of activity
Focus on SMEs, large transport networks (Trans-European corridors and infrastructure)
Western Balkans Investment Framework: 2010 key year
- managing the volume of operations
- effective coordination and pooling of financial resources
- assessment of results on the ground
10/04/23 8European Investment Bank
WESTERN BALKANS INVESTMENT FRAMEWORK
OFFICIALLY LAUNCHED on 8-9 December 2009
KEY PLAYERS: Beneficiary countries (WB including Croatia); European Commission; Partner International Financial Institutions – IFIs (EIB, EBRD, CEB); EU Member States (including bilateral financial donors)
OBJECTIVE: to pool financing resources (grants and loans) on regional priority projects
COMPONENTS: A Joint Grant Facility (JGF) pooling grants from the European Commission, IFIs and bilateral donors; A Joint Lending Facility (JLF) based on loans provided by IFIs
SECTORS: transport, energy, environment, social sectors, SMEs, energy efficiency
INTEGRATED FINANCING PACKAGES: blending loans with grants; providing customised TC (e.g. identification, technical & management assistance, feasibility study, detailed design, assistance to tendering process, supervision of works, environmental impact assessment)
INTEGRATED PROJECTS PIPELINE: Steering Committee in December '09 approved 26 projects for a total of EUR 26 million of grants and EUR 2.2 billion of loans
WEBSITE: www.wbif.eu (platform) under development CONTACT: [email protected]
10/04/23 9European Investment Bank
WESTERN BALKANS INVESTMENT FRAMEWORK
HOW TO SUBMIT PROJECTS
National IPA Coordinator (NIPAC)Donor Coordination Offices
Beneficiary
Identification of project
National IPA Coordinator (NIPAC)Donor Coordination Offices
Beneficiary
Identification of project
Screening
Project Financiers’ Group
Screening
Project Financiers’ Group
Financing approval
Steering Committee
Financing approval
Steering Committee
PROJECT FINANCIERS’ GROUPUPCOMING MEETINGS 2010 II - March 24 III - May 26 IV - September 29 V - November 24
STEERING COMMITTEE UPCOMING MEETINGS 2010II - June 28-29 (tbc)III - Last quarter (in a beneficiary country)
10/04/23 10European Investment Bank
THANK YOU
Massimo CINGOLANIMassimo CINGOLANI
Deputy Head of Deputy Head of DivisionDivision
Western Balkans Investment Western Balkans Investment FrameworkFramework
E-mail: [email protected]: [email protected]
Tel.: (+352) 4379 87226Tel.: (+352) 4379 87226
Fax: (+352) 4379 67487Fax: (+352) 4379 67487
