European Investment Bank
Bpifrance receives loans from the European Investment Bank to refinance its loan activities.
The latest EIB operations have thus re-financed Business Start-Up Loans (Prêts à la création d’entreprise - PCE) and Innovation Development Contracts (Contrats de développement innovation – CDI).
The Bank is the financial institution of the European Union and aims to support public and private projects that –
• are located primarily in the territory of the European Union
• contribute to achieving the goals of the EU as a whole
• Investments compatible with EU goals.
The EIB supports projects that foster –
• innovation (Lisbon agenda)
• sustainable development
• trans-European networks
• regional development
• support for SMEs
At the heart of the EIB’s activity is the its annual investment support to over 26,000 SMEs in EU Member States. In 2006, SMEs received a total of more than 1 billion euros worth of EIB funds through its partner banks in France.
In this regard, EIB lines of credit are provided to local institutions that include Bpifrance, who use them to provide modest loans to fund their SME clients, in line with the EIB’s financial assistance objectives.
Long term resources at the best rates
By providing long-term resources at the best market rates, the EIB enables Bpifrance to expand its activities and pass on the advantageous borrowing terms of EIB loans to SMEs, in partnership with the banking network.
The combined efforts of two public-service institutions - one at European and the other at French national level – in pursuit of common objectives is thus creating a genuine catalytic effect in favour of SMEs.
In November 2006, the EIB provided Bpifrance (then OSEO) two new medium and long term loans for a total amount of 80 million euros -
• a loan worth 50 million euros for 7 years, for financing SME investment
• a loan worth 30 million euros for 4 years, as EIB’s specific contribution for setting up Business Start-Up Loans (PCE).
This increase in EIB’s investment is in keeping with the development of its policy framework of support for European SMEs.