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EIB to introduce fast-track financing in Central Asia amid COVID-19 pandemic

Business Materials 9 July 2020 13:45 (UTC +04:00)
EIB to introduce fast-track financing in Central Asia amid COVID-19 pandemic

BAKU, Azerbaijan, Jul. 9

By Nargiz Sadikhova - Trend:

European Investment Bank (EIB) will introduce fast-track financing in Central Asian countries amid COVID-19 pandemic battle, EIB official told Trend.

The representative added that in the wake of the COVID-19 pandemic, the EIB introduced a response package for partners in 100 countries including countries in Central Asia.

As a part of the support package to countries outside the EU, including Central Asia, the bank has accelerated financing and targeted technical assistance, offered short-term support for health and business investment and increased backing for business impacted by the pandemic.

“The EIB package will both strengthen urgent health investment and accelerate long-standing support for private sector investment that reflects financing needs in partner countries,” the official said.

He also noted that the immediate fast-tracked support from the EIB will help to sustain jobs and livelihoods in sectors most threatened by the economic and social impact of the coronavirus, and will be followed by additional long-term health and business financing as needed.

“The EIB has been in contact with public and private sector clients in countries outside Europe to determine the most effective approach to enhance public health preparedness and business resilience, as part of the EIB’s longstanding support for sustainable and inclusive growth around the world,” the official said.

Thus, the rapid response will be adapted to reflect the specific sector needs and new local challenges as the impact of the coronavirus continues. The EIB will also provide technical assistance and share sector expertise to strengthen and enhance the impact of new investment.

The EIB also stands ready to accelerate about €1 billion of disbursements on existing approved loans to help the health sector in countries outside of the EU face the coronavirus pandemic, as well as to ensure that business activity can access immediate financing to counter cash flow and liquidity challenges.

“Immediate support for longstanding global health sector clients will include support for new public health efforts, helping clients to refocus existing operations to tackle the health crisis and accelerating disbursement of approved private and public sector projects,” the official said.

Rapid identification of priority projects will be further enhanced by the EIB’s close existing cooperation with health ministries and health sector partners outside Europe.

The EIB’s response outside the EU will also support enhanced access to finance for small and medium-sized enterprises, including through scaling up existing credit lines managed by local banks around the world including Central Asia.

The immediate response will focus on supporting companies in sectors most impacted by the coronavirus pandemic and where production capacity is most exposed, the official said.

“This will also help to reinforce the key role of local banks and financial institutions, including microfinance partners, whose local knowledge will be key for ensuring a successful long-term response,” the bank representative said.

The EIB will work with public sector partners to increase concessional financing available for both health and business investment. This will include support for public services including health, regional trade and highly vulnerable sectors such as tourism and hospitality.

“Fast-track financing will be available for countries where the EIB already operates including Central Asia. The initiative has been designed so that EIB financing can be supported by additional backing from international and European development finance partners,” the official said.

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