The European Investment Bank (EIB) has approved an additional €5.1 billion to support company investments during the corona crisis and health institutions in EU countries that have been hardest hit by the coronavirus pandemic.

That amount includes one billion euro in loans to support the new European Guarantee Fund established to assist SMEs struggling as a consequence of the corona crisis.

“The winter has not even started, and we already face what looks like a second wave of the COVID-19 pandemic across Europe,” said Werner Hoyer, President of the European Investment Bank.

“Health systems are again under stress and we must fear that the situation will worsen in the coming months,” he added.

“In this situation, I am glad that the EIB Board has today agreed the first operation under the EIB Group’s new European Guarantee Fund, designed to help small and medium-sized companies to withstand this crisis,” he said as carried by the EIB website.

The board has approved €1.66 billion for the European Guarantee and equity products, the press release said.

“The total EUR 2.6 billion EGF approvals aim to mobilise EUR 11.33 billion of total financing.”

On 23 April the European Council established the European Guarantee Fund as part of a broader package of measures to help EU economies to recover from the crisis caused by the Covid-19 epidemic.

The fund is valued at €25 billion and it is aimed at supporting SMEs, including start-ups.

Up to 5% would be earmarked for public companies and health institutes as well as for health research and services related to the current health crisis.

All 27 EU member states would pay a contribution to the guarantee fund proportional to EIB’s capital.

Croatia’s government decided to send a final draft bill to parliament to ratify an agreement between EIB and Croatia on its contribution to the fund. Croatia’s contribution would amount to €106.7 million.