01 May 2008
Construction of the Trans-European Network (TENs) projects could be boosted through the introduction of new EU loan guarantees – a move that is supported by the European Investment Bank (EIB).
The initiative is aimed at attracting higher private sector participation and is expected to be particularly beneficial for cross-border schemes.
Market testing of the guarantee for use on transportation schemes has indicated strong support. Many organisations believed it would be a ‘stamp of approval’ and send positive signals to the private credit and capital markets.
A proposal for the design of the guarantee instrument has now been presented to the European Council for approval.