European Investment Bank

European Investment Bank

Description

Annual Report 1998
Activities of the institutions and bodies
Banks, insurance

Sujets

• Annual report
• European Investment Bank
• Economie gestion

Informations

• Publié par: EUROPEAN-INVESTMENT-BANK
• Nombre de lectures: 40
• Langue: English
• Poids de l'ouvrage: 38 Mo

Extrait

199
Annual Report
European
Investment
Bank Key data
(EUR million) 1998 1997
29 526 26 202 Contracts signed
25 116 22 958 Within the European Union
4410 3 244 Outside then Union
• Applicant Countries 2 375 1 541
(1 370) (of which Pre-Accession Facility)
886 1 067 • Mediterranean Countries (excluding Cyprus)
560 60 • Africa, Caribbean, Pacific, OCT
135 199 South Africa
362 • Asia, Latin America 378
• Central and Eastern Europe (Albania, FYROM) 92
Loans approved 34 223 33 369
Within the European Union 28 246 29 748
Outside then Union 5 123 4 475
Disbursements 27 993 23 473
From own resources 27 792 23 346
From other resources 201 127
Resources raised 30 098 23 025
Community currencies 23 395 19 639
Non-Community currencies 6 703 3 387
Outstandings
155 333 142 406 Loans from own resources
347 386 Guarantees
Financing from budgetary resources 2 360 2 334
Short, medium and long-term borrowings 123 767 110 394
14 654 14 310 Reserves and profit for the financial year
Balance sheet total 176 369 157 122
Subscribed capital at 31 December 62 013 62 013
of which paid in and to be paid in 4 652 4 652
95 550* Subscribed capital at 1 January 1999
See Financial Statements, page 96 1998
Annual report
European
Investment
Bank í.hál. ιιιιιι::ιιιι·"!ΙΙΙ1Ι-i
4 Ί st Annual Report of the
European Investment Bank
ISBN 92-828-5975-4
Text finalised 31 March 1998 Page
Message from the President 4
1998: Overview
Strategic guidelines
Promoting European integration 11
Regional development 11
Amsterdam Special Action Programme 16
19 European communications infrastructure
24 Natural and urban environment
26 Energy conservation
30 Industrial competitiveness and SM Es
Supporting cooperation policies with non-member countries 33
Countries applying for accession 34
Euro-Mediterranean Partnership Countries 37
African, Caribbean and Pacific States and OCT 39
South Africa 40
Asia and Latin America 41
Resources raised 43
EIB borrowing operations on the financial markets 43
Liquidity management 52
Liquidityt results 53
Decision-making bodies, administration and staff 55
Decision-making bodies 55
Organisation chart 60
Administration and staff 63
Presentation of the accounts 67
Results for the year 69
Financial statements 70
Report of the Auditor 91
Statement by the Audit Committee 92 Ml
European Investment Bank
Annexes
Lending within the European Union 99
Lending outside then Union 112
Statistical tables 119
1998 page 3| ANNUAL REPORT Message from the President
1998, the Bank's 40th anniversary, was a momentous year for the EIB. The
diversity and volume of the Bank's borrowing and lending was at record levels,
but more significantly the Bank was able to make a key contribution to its main
strategic objective - supporting the successful launch of Monetary Union and the
single currency.
With borrowings on the world's capital markets of more than EUR 30 billion,
over half of which was in euro-denominated or euro-tributary bond issues, the
Bank played a pioneering role in opening up and diversifying the euro market
and helping to create a broad and varied range of instruments denominated in
the new currency.
At the same time the Bank vigorously implemented the programme in support
of growth and employment in Europe launched in late 1997 in response to the
Amsterdam European Summit. Some EUR 600 million has been committed to
providing venture capital for innovative small and medium-sized enterprises,
making the EIB, in close partnership with the Union's banking community and
our affiliated institution, the European Investment Fund, the leading source of
such financing in Europe. In addition, new loans of nearly EUR 7 billion were
allocated for funding some 50 key projects, including many private-public sector
partnerships, in the fields of health, education and urban renewal.
These operations, under the Amsterdam Special Action Programme, were a
priority. But the Bank did not neglect its traditional objectives. Substantial loans
were committed for developing efficient trans-European communications
networks, catering for the Union's energy needs, preserving our environmental
and ecological heritage, and sustaining the competitiveness of European
industry, particularly of small and medium-sized enterprises. At the same time
we maintained overall priority for investment in the less favoured regions of the
Union, in pursuit of the Bank's primary task of promoting economic integration
and the balanced development of the Union. In 1998 over 70% of the Bank's
financing in the Member States was for projects in such regions.
Another key feature of 1998 was the substantial increase in the Bank's support
for projects in the countries applying for membership of the Union. With the
launch of our new Pre-Accession Lending Facility, such lending last year
amounted to over EUR 2.3 billion, concentrated on priority sectors such as
communications infrastructure and the environment, in order to help raise
standards to the level necessary for Union membership.
This activity in the applicant countries formed part of lending of nearly
EUR 4.5 billion in 1998 in support of the European Union's external aid and
cooperation policies in over 120 countries throughout the world. Over
EUR 900 million went to countries of the Mediterranean in support of the Euro-
Med Partnership; a record EUR 700 million to Africa, the Caribbean and the
Pacific; and over EUR 350 million for projects in Asia and Latin America.
I998-ANNUAL REPORT page 4 The sheer volume and diversity of these activities in support of the European
Union's objectives mark a profound development in the Bank's activities over the
past decade. It was particularly satisfying to me, as I come to the end of my six-
year term as President of the Bank, that the confidence of the Member States in
the Bank's achievements was marked by the decision of the Governors last June
to raise the Bank's capital to EUR 100 billion. This gives the Bank, within the new
Strategic Framework also endorsed by the Governors, a solid base on which to
continue its vital role in the coming critical years of consolidation of Monetary
Union and enlargement of the Union itself.
These achievements owe much to the outstanding professionalism and
dedication of the Bank's staff and the support of its governing bodies. I thank
them in particular for the help and encouragement they have given me during
my period of office.
Sir Brian Unwin
President and Chairman of the Board of Directors
The ElB's Management Committee
page·) 1998:
Overview
In accordance with its remit and priorities,
the EIB continued to support, through its
borrowing and lending activity, the building
of a closer-knit, more united and outward-
looking Europe. The Bank thus made a con­
siderable contribution to taking up the chal­
lenges facing the Union as it approaches the
end of the century by focusing its operations
on three major areas: actively assisting intro­
duction of the euro; stepping up its financing
to promote growth, a stronger economic and
social fabric and more integrated economies
within the Union; and preparing the appli­
cant countries for EU membership.
In pursuing its task and objectives, the EIB re­
corded significant growth in its lending activ­
ity in 1998, which totalled EUR 29.5 billion,
up from 26.2 billion the previous year.
Against this background, there was a marked
expansion of financing operations to foster
the internal cohesion of the Union and sup­
port Economic and Monetary Union, as was
also the case with those giving practical
effect to the Resolution on Growth and
Employment adopted by the European
Council meeting in Amsterdam. To this end,
the Bank introduced pioneering financial in­
struments facilitating access to bank credit
and the provision of equity capital for inno­
vative and job-creating SMEs, while extend­
ing its operations to the health, education
and urban renewal sectors.
Pressing ahead with its role of actively promot­
ing the preparation of capital markets for the
euro, the EIB launched new euro and euro­tributary issues in 1998, representing awaiting signature remained steady at
nearly half of its resource raising, as against a 34.8 billion, comparable to the 1997 level.
quarter in 1997. The EIB also started to restruc­
By the close of 1998, total outstanding lend­
ture its debt by exchanging existing bonds de­
ing from own resources and guarantees came
nominated in the currencies of those countries
to 155.6 billion. Aggregate outstanding bor­
participating in the euro for new tributary
rowings amounted to 123.8 billion. The bal­
bonds. Borrowing operations signed grew by
ance sheet totalled 176.4 billion, up by 12%.
36% compared with the previous year and to­
By decision of the Board of Governor