Responding to COVID-19
In 2020 we've refocused the Plan's guarantees to help countries respond to the coronavirus (COVID-19) pandemic.
We're targeting in particular small business owners, women and young people. And we're devoting more of the available financing to:
- small businesses - helping them stay afloat by:
- encouraging local banks to lend more to them
- making it more affordable for them to borrow - in many cases they'll be able to pay less in interest, or repay the loan over a longer period, than they would otherwise.
- healthcare - and in particular testing labs.
Implementation on track
At the start of 2020 we had allocated all €1.54 billion available through the Plan for financial guarantees – financing 28 in all.
This should bring in €17.5 billion in overall investment.
And we’ve so far signed agreements with partner institutions to put 7 guarantees into practice.
More signatures will follow in 2020.
We approved 28 guarantees.
We signed the first agreement with a partner financial institution for putting a guarantee into practice:
We signed or concluded in substance more guarantee agreements with partner financial institutions:
- FMO Ventures
- Boosting Investment in Renewable Energy
- Archipelagos – One Platform for Africa
- SME Access to Finance
- Supporting Investment in Sustainable Energy
- Resilient City Development (RECIDE)
For the last 4 a signature ceremony took place early 2020.
We refocused the guarantees to respond to the coronavirus (COVID-19) pandemic.
We're also set to sign more guarantee agreements.
We'll publish the 2019 report in the coming weeks.
In 2019 we also commissioned an independent evaluation of the European Fund for Sustainable Development, the financing arm of the EU External Investment Plan.
The evaluation concluded that the Fund is 'strongly relevant' to the investment needs of Sub-Saharan Africa and the EU Neighbourhood.
Investment climate support
We’re supporting work to identify what puts off potential investors from certain countries – and how to bring them on board.
To date we’ve helped finance detailed reports for 15 partner countries.
We’ve helped to bring together governments and businesses on a regular basis to discuss challenges to securing investment.
So far we’ve done this in 16 partner countries.
We’re backing government reforms and other initiatives to attract more investment.
In 2019 alone, we invested over €600 million.