Annual Report European Investment Bank
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ANNUAL REPORT EUROPEAN INVESTMENT BANK The European Union's financing institution THE MISSION OF THE EUROPEAN INVESTMENT BANK Our mission is to further the objectives of the European Union by making long-term finance available for sound investment. • We are at the service of the Union. We were created by the Treaty of Rome; our shareholders are t~e Membe.r States; and our Board of Governors is composed of the Finance Ministers of these States. • We provide service and value-added -through our appraisal and follow-up of investment prOjects and ..programil)es. To receive our support, projects and programmes must be viable in four fundamental areas : economi~; technical, environmental an<:J financial. We appraise each investment, project thoroughly and follow it through to completion. -through our fi~~ncing. Through our own lending operations and our ability to attract other financing, we :.Viden the range of funding possibilities. Through our borrowing activities, we contribute to the development of capital markets throughout the Union. • We o~t.i fir.t-class terms and conditions. Our financial soundness derives from the strength and commitment of our .shareholders, the independencEl of our professional judgements and our record _of achievement. It enables us to borro~ ~~ the finest terms, which we pass on in our iending conditions.' • We work in p~rtnership with oth~rs . Our policies are established ·in ~lose coordination with the Member States and the other Institutions of the European Union. We.also cooperate cl~sely with the business and banking seclo;s and the main international organisations. in our field. • We attract qualified and multi-lingual. staH from all the Member States. We are motivated by our direct participation in the construction of Europe. KEY DATA (ECU million) 1995 1994 Contracts signed .................................... 21 408 19 928 loans signed From own resources . .. 21 160 19 661 From other resources .................................. 248 267 Within the European Union ............................ 18 603 17 682 of which loans . 18 603 17 656 of which guarantees . 26 Outside the European Union ............................ 2 805 2 246 Africa, Caribbean, Pacific ............................. 430 462 South Africa . .. 45 Mediterranean ..................................... 1 038 607 Disbursements Central and Eastern Europe . 1 005 957 Asia, latin America .................................. 288 220 Loans approved during the year ......................... 25 664 22 819 Within the European Union ............................ 23 071 20 335 Outside the European Union ............................ 2 593 2 484 Disbursements 16 881 15 539 From own resources ............................... ·... 16 749 15 435 From other resources ................................. 132 104 Resources Resources raised .................................... 12 395 14148 Community currencies ................................ 10 774 10 994 Non-Community currencies ............................. 1 622 3 154 Outstandings loans from own resources 114696 106 087 Guarantees ........................................ 331 361 Financing from other resources (Special Section) .................................... 3 492 3 783 Short, medium and long-term borrowings ................... 87 079 83 673 Subscribed capital at 31 December 62 013 57 600 Balance sheet of which paid in and to be paid in 4 652 4 321 120 CXXl ,-..,--,.-__,..,~~-,.--,., HXJCXXl Reserves and profit for the financial year ................... 12 302 10135 80 CXXl !:IJCOJ Balance sheet total .................................. 108 825 102 753 40 CXXl 20 CXXl Bank staff ......................................... 897 859 ·"'" European Investment Bank 100, Bd Konrad Adenauer /~2950 Luxembourg Tel. 4379~ I ~Fax 43 77 04 H320 Videoconferences 43 93 67 External offices Off;ce for Lending Operations in holy Via Sardegna, 38 ~ /~00 187 Rome Tel. 4719~1 ~Fax 42 87 34 38 H320 Videoconferences 48 90 55 26 Athens Office 12. Avenue Amalios GR~ I 0557 Athens Tel. 32 20 773 ~Fax 32 20 776 Lisbon Office Avenida do Uberdade, 144 ~ /56. 8° P~ 1250 Lisbon Tel 342 89 89 ~ Fax 347 04 87 london Office 68. Pall Mall ~ London SW I Y 5ES Tel. 0171 343 1200 ~Fax 0171 930 9929 Madrid Office Calle Ortega y Gosset, 29 E~28006 Madrid Tel. 431 13 40 ~ Fax 43 I 13 83 Representative Office in Brussels Rue de Ia loi, 227 ~ 8~1040 Brussels Tel. 230 98 90 ~Fax 230 58 27 H320 Videoconferences 280 11 40 ,,) I ,I ) ·r ANNUAL REPORT 1995 '} I ·' l \ .,, i. '\ ) .·, . { I . j I . ISBN 92-827-6303-X Text finalised 1 April 1996 38 tn ANNUAL REPORT OF THE EUROPEAN INVESTMENT BANK CONTENTS Page Mission Statement Message from the President 5 The EIB, the European Union's financing institution ................ 7 1995 : Overview 7 Serving European Union objectives .... 10 Financing provided within the European Union 19 Breakdown by Community policy objective ................ 23 Financing operations by country ...................... 33 In the Nordic countries, as in the Union os o whole, the EIB is promoting the establishment Operations outside the European Union ....................... 45 of efficient communications systems. Africa, Caribbean, Pacific ............................... 45 Mediterranean Countries ................................ 49 Central and Eastern European Countries ................ 51 Asian and Latin American Countries ......................... 54 Resources raised . 55 EIB borrowing operations on the financial markets . 55 Liquidity management .................. 62 Decision-making bodies, administration and staff ................. 63 Decision-making bodies ..... 63 Administration and structure .. 67 Results for the year, annual accounts 73 Balance sheet and financial statements ....................... 76 Report by the External Auditors . .............. 91 Statement by the Audit Committee .......................... 92 Annexes .......... 93 Economic background . 93 List of financing provided in 1995 . 95 Statistical tables . 106 Guide to readers . 121 MESSAGE FROM THE PRESIDENT Against a background of sluggish economic growth, the European Investment Bank con tinued in 1995 to make a substantial contribution towards implementing the European Union's priority economic objectives. Total/ending amounted to nearly ECU 21.5 billion and, reflecting the priorities of the Union and its Member States, concentrated on build ing up infrastructure as well as on promoting new investment in industry and the service sector in support of economic development. The 200 or so major capital projects and investment programmes which the EIB helped to finance in the Member States during J 995 accounted for some 5% of gross fixed capital formation within the "Fifteen", and substantially more in the less prosperous regions. This is because more than two thirds of this financing benefited areas faced with structural problems in terms of development or industrial conversion, highlighting again the priority attached by the EIB to fostering regional economic growth and integration throughout the Union. In this activity, we continued to cooperate closely with the European Commission so as to ensure an optimum combination of EIB loan finance and Community budgetary grant aid. The same cooperation ~haracterises our activities outside the Union, where the Bank sup ports, by its long-term lending, the Union's aid and cooperation policies in a growing number of third countries. By making more than ECU 2.8 billion available in some sixty of these countries, the Bank helped;' as in previous years, to promote the sustainable de velopment of their economies. The main thrust of our lending has been directed towards forging closer communications links with the Union, improving the living conditions of the populations concerned and encouraging joint ventures associating local operators with entrepreneurs in the Union. To achieve these results, the Bank has pursued four major lines of action: First, we have worked hard to identify sound projects answering real economic needs. The principal sectors targeted by our financing are: communications and energy infra structure creating arterial networks across Europe; environmental protection, especially in urban areas; and industry, the competitiveness of which is vital for our future. Bank operations in these sectors are designed to help build a closer-knit Europe and to foster stronger growth and employment levels within the Union, on a long-term basis. Second, the EIB has successfully implemented a range of mandates entrusted to it as part of specific European Union policy priorities. For example, the Bank has been particularly active in the financing of SMEs and trans-European networks (TENs}, both vitally impor tant for job creation and the balanced distribution of capital investment within the Union. Under its special "TENs Window", the EIB is already committed to financing seventeen of the twenty-four priority TENs identified by the Essen European Council, and the rest are under Bank appraisal. The Bank has also helped to back projects or programmes target ing completely new EU objectives. Within the Member States, the EIB has not only sup ported the Peace and Reconciliation Initiative in Northern Ireland and in the six Border Counties of Ireland, particularly with loans for on/ending to SMEs, but it has also aided rehabilitation of regions in Madeira and Piedmont stricken by natural disasters; outside the Union, the Bank has supported projects designed to reinforce the Middle East peace process as well