EIB-Information : July 1988
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Den Europæiske Investeringsbank Europäische Investitionsbank Ευρωπαϊκή Τράπεζα Επενδύσεων European Investment Bank Banco Europeo de Inversiones Banque européenne d'investissement Banca europea per gli investimenti Europese Investeringsbank Banco Europeu de Investimento July 1988 · No 56 ISSN 0250-3867 EIB-Information Annual meeting of the EIB'S Board of Governors In brief . The European Investment Bank's Board of Governors at their annual meeting, on 13 June in Luxembourg, approved the Bank's 1987 annual report and balance sheet. The Member States are represented by a When approving the ElB's 1987 An• Minister, usually the Finance Minister, on the Board of Governors. (') nual Report, the annual meeting In his capacity as chairman of the Board of Directors, EIB President of the Board of Governors re• Ernst-Günther Bröder, presented the annual report to the Governors. viewed the Bank's thirtieth year of Mr Bröder's address, that includes a summary of the ElB's activities activity (see pp. 1 to 5). Since its during the year, is reproduced below. Approving the annual report, inception in 1958, the EIB has con• the Governors congratulated the Board of Directors and the Manage• sistently stepped up its volume of ment Committee for their conduct of Bank affairs in 1987. operations and now ranks second, behind the World Bank, among major institutional lenders. More importantly, the Bank has managed The six-year term of the ElB's ElB's Audit Committee, Mr Constan• to acquire its present position Management Committee having tinos Thanopoulos, Manager, Bank against a constantly changing eco• come to an end, the Governors, on of Greece. Chairmanship of this nomic backdrop, while both con• a proposal from the Board of Direc• Committee rotates for one year to centrating on its basic task of ser• tors, reappointed, Ernst-Günther Mr Albert Hansen, Secrétaire Gén• ving the interests of the European Bröder, President, and C. Richard éral du Conseil du Gouvernement, Community and demonstrating con• Ross, Lucio Izzo, Alain Prate, and Luxembourg. Third member is Mr siderable versatility and professio• Miguel A. Arnedo Orbañanos as João Pinto Ribeiro, Juiz Consel• nalism. Safeguarding and consoli• Vice-Presidents. They appointed a heiro, Tribunal de Contas, Lisbon. new Vice-President, Mr Erling Jør• dating the Bank's AAA credit rating requires a cautious and circumspect gensen, Permanent Secretary, Bud• Reviewing the Bank's activities in approach ; at the same time, the get Department, Danish Ministry of its 30th year of existence, the market — whose constraints affect Finance, who was a Director of the Governors welcomed the contribu• both EIB lending and borrowing bank (since 1986). On 29 June, 1988, tion the Bank had made to the activity — calls for flexibility and a further new Vice-President was Community's development. They innovation. appointed, Mr Ludovicus Meule- commended the position the EIB mans, until then also a member of holds on financial markets and its Bank's Board of Directors (since efforts to suport new priorities This ability to adjust, underpinned 1976) (see centre page insert). facing the European Community. by the Bank's extremely sound financial base, will enable the EIB The Governors also appointed the The Board expressed satisfaction at to contribute actively towards new Board of Directors whose five- the Bank's participation in imple• attainment of the objectives year period of office had come to menting the Single European Act enshrined in the Single Act, parti• an end (for details see centre page and in responding to the challenges cularly the single market and grea• insert), and a new member to the of '1992' through its support of ter Community-wide economic and major infrastructure projects, deve• social cohesion (see pp. 5 to 8). (') The annual meeting was chaired by the lopment of advanced technology Governor for Denmark Palle Simonsen, Minis• and environmental protection. They During the 1988 Annual Meeting, ter of Finance, in the absence of the chairman, recognised the Bank's combination the Governors also appointed the Governor for Germany Gerhard Stolten• of pragmatism and professionalism, berg, Minister of Finance. Chairmanship of the members of the Board of Direc• Board of Governors, which rotates annually and noted that its cost-effective, tors and the Management Com• according to the alphabetical order of Mem• market-oriented approach had been mittee (see centre page insert). ber States, is taken over by the Governor for reinforced by changes in its internal Greece Panayotis Roumeliotis, Minister for structure and personnel policies, National Economy, as from 14 June, 1988, until the end of the day of the annual meeting in geared to increasing staff product• 1989. ivity. The Governors expected the EIB to regional policy, namely Portugal, more than 20 per cent of total len• continue to strengthen the social Greece, Ireland, Northern Ireland, ding in the Community. These loans and economic cohesion of the Com• the Mezzogiorno and certain parts centred chiefly on waste water munity through support for invest• of Spain. The Bank also boosted its treatment schemes or improve• ment in regional development. In support for capital investment in ments to the quality of drinking this context the Governors re- areas with traditional industries in water and on the installation of emphasised that close co• decline, or which were hampered equipment designed to reduce ordination was needed between the by structural problems, especially in atmospheric pollution from indus• Community's structural funds and France and the United Kingdom. trial sources, including coal-fired power stations. the EIB to ensure the most efficient Lending designed to sharpen the use of combined resources. They competitiveness of European indus• Investment for improvements to underlined that in striving to deve• try ran to 1.3 billion ECUs, of which Europe's transport and telecom• lop the less-favoured regions, grant 500 million went into advanced munications networks attracted finance should be used in such a technology projects. In furtherance 700 million ECUs. The type of infra• way that it generates supplemen• of your Decision in February 1987 structure financed included roads, tary investment and ensures the that the Bank should lend 750 mil• rail links and port installations as maximum qualitative and quantit• lion ECUs on the same terms and well as facilities underpinning the ative impact of Community resour• conditions as NCI IV, the Bank has development of air transport. ces. been able to step up its backing for In 1987, the total cost of investment productive investment by small and receiving EIB support in the Com• The address of President Broder to medium-sized enterprises located munity adds up to around 19 billion the Board of Governors follows : outside assisted areas. Aggregate ECUs, a figure equivalent to approx• lending in this category amounted imately 3 per cent of the Commun• Mr Chairman, to about 540 million in all. In addi• ity's gross fixed capital formation. Gentlemen, tion, loans amounting to 250 million In the less prosperous countries ECUs were directed largely to and regions, where much of the In 1987, the Bank's lending for the investment requiring cooperation financing was concentrated, the finance of investment totalled 7.8 between firms from different coun• contribution of projects supported billion ECUs, a rise of nearly 4 per tries. These various loans to indus• by the Bank, compared with total cent on the 7.5 billion lent in 1986. try came on top of those granted in investment, was considerably grea• This was accomplished against a the industrial sector under the hea• ter, ranging from 5.3 per cent in background of moderate economic ding of regional development. Greece to 14 per cent in the Mezzo• growth in the Community as a giorno. whole. Altogether, financing in the Com• munity for investment in industry, Last year, loans from the Bank's Lending in the Community services and agriculture ran to 2.6 own resources accounted for more amounted to 7.45 billion ECUs, up billion ECUs, about 35 per cent of than four fifths of total Community some 5.5 per cent on 1986's figure total lending in the Member States. lending for structural purposes. of 7.1 billion. The bulk of the funds, Of this overall amount, 1.6 billion Financing outside the Commun• 7 billion, were drawn from the was deployed via global loans con• ity, under development cooperation Bank's own resources, with the cluded with an ever-widening range policy, amounted to around 400 mil• remaining 450 million coming from of intermediary institutions and tar• lion ECUs, of which 189 million the resources of the New Commu• geted towards small and medium- came from the ElB's own resources nity Instrument (NCI). This expan• scale ventures. The ElB's appraisal and 203 million from budgetary sion in lending from own resources and monitoring criteria exert a posi• resources managed by the Bank on squares with the forecast increase tive influence on the harmonisation behalf of the Community. The mapped out for 1987 in real terms at of investment planning in its areas Bank's operations in the ACP States the time of the last capital increase. of activity. last year were mounted largely For the second year running, the Loans totalling 2.3 billion ECUs under the Third Lomé Convention. Bank has been able to advance were devoted to investment which Nearly 350 million ECUs, a record loans in all the Member States. Italy furthered the Community's annual figure, was advanced in sup• continues to be the largest benefici• energy policy objectives. Of this port of investment schemes in 35 ary with nearly 42 per cent of the some 900 million went in support of countries and territories, chiefly in total, followed by the United King• schemes aimed at making more Africa.