Operations approved so far
The new European Fund for Sustainable Development (EFSD) - the financial arm of the EU External Investment Plan - comprises a guarantee and blending.
- the total budget for the Guarantee is €1.5 billion.
- of this the EU has so far allocated €800 million to support 12 guarantees.
- The total budget for blending programmes in Africa and the EU Neighbourhood is €2.6 billion.
- Of this the EU has so far allocated €1.6 billion.
The EFSD 2017 Operational Report gives full details of these blending programmes.
How the External Investment Plan funds projects and operations
The EFSD is the financial arm of the EU External Investment Plan.
- blending - the EU's existing so-called 'blending' programmes (€2.6 billion budget), which mix loans and grants
- guarantee - a dedicated financial guarantee (€1.5 billion budget)
The guarantee can:
- attract financing for some of the initial capital ('equity' or 'risk capital') a project needs to get off the ground
- serve as a pledge (guarantee) to pay back part or all of a loan if a borrower incurs losses and defaults on it