The Management Committees of the European Investment Bank (EIB) and of the Kreditanstalt für Wiederaufbau (KfW) met today in Luxembourg as part of a regular series of exchanges.

The two Institutions discussed the development of the financial markets and the current economic crisis in Europe and globally. The EIB and the KfW both confirmed their intention to take decisive action to continue their increased and extensive support in response to the market developments and the stimulus programmes at European and German level.

In particular, both are increasing their financing of small and medium-sized companies as well as mid-caps, to the energy, environmental and climate change sectors as well as to infrastructure, notably in Central and Eastern Europe.

The EIB and the KfW reaffirmed their continued wish and intention to collaborate together as well as with other public and private sector banks and long-term financial institutions and to use their resources in an effective manner to counter the current crisis and to support the recovery of the European economy.

At their meeting today, building on the success of the first funds in operation, the EIB and the KfW also announced their intention to set up a further global carbon fund for CO2-saving projects. This new fund shall help meet the requirements of small and medium-sized companies and regulated institutions. It will provide an outlet for new forms of carbon credit from developing countries.

Note for the editor:

The European Investment Bank was created by the Treaty of Rome in 1958 as the long-term lending bank of the European Union. The task of the Bank is to contribute towards the integration, balanced development and economic and social cohesion of the EU Member States. The EIB raises substantial volumes of funds on the capital markets which it lends on favourable terms to projects furthering EU policy objectives. The EIB continuously adapts its activity to developments in EU policies.

KfW Bankengruppe gives impetus to economic, social and ecological development worldwide. A promotional bank under public law founded in 1948, its shareholders are the German federal government (80%) and the federal states (20%). KfW takes a strong stand for climate and environmental protection both within Germany and abroad. It supports, among others, SMEs and business start-ups, the private housing sector and the development of municipal infrastructure as well as education finance.