The European Investment Bank (EIB) and BGL BNP Paribas have concluded a partnership agreement whereby the latter will distribute E50 million under its programme of “EIB loan for SMEs.” BGL BNP Paribas’s branches will be the financial intermediaries, on lending the EIB funds to small and medium-sized businesses to support their investment projects.

Reportedly, this “EIB loan for SMEs” consists of a credit line that BGL BNP Paribas will deploy in support of small businesses with fewer than 250 employees operating in a wide range of economic sectors eligible for EIB financing. The projects financed must be carried out within the EU and cost a maximum of E25 million each. Refinancing operations or purely financial or property transactions will not qualify.

With this agreement, BNP Paribas will now contribute to the development projects of its customers in four of its European domestic markets. The BNP Paribas group has already benefited from EIB refinancing agreements in France through BNP Paribas, in Italy through BNL and in Belgium through BNP Paribas Fortis.

Carlo Thill, chairman of BGL BNP Paribas’s management committee, said: “We are proud to be able to take part in this EIB financing operation and lend our support to small businesses in Luxembourg by once again broadening our range of products and services in a further illustration of the ongoing development of our activity and our deep roots in Luxembourg’s economy. The EIB loan represents another effective means to help small firms get through the current crisis. As a reliable partner and leading lender to small businesses we did not hesitate to join in with this operation”.

EIB Philippe Maystadt, president of EIB, said: “The importance, especially at a time of crisis, of maintaining the flow of credit to small businesses, supporting their activities and investment projects and securing the jobs that they provide”. He underlined the EIB’s commitment in this sense and pointed to the resources mobilised and actions taken by the institution in a very short space of time.

The EIB is the long-term lending arm of the European Union, and is wholly owned by the 27 EU member states. Its mission is to support through its activities the development of EU policies.

Luxembourg-based BGL BNP Paribas offers banking services to professionals and small- and medium-size companies.