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The Financing Mechanisms of the EFSI
39. The EFSI is supposed to start working at the beginning of 2015 thanks to a
"frontloading "of the €5 billion EIB participation. How will this work
concretely?
The EIB will take all the preparatory steps at the beginning of 2015 to be able to sign
commitments, without waiting for the publication in the Official Journal of the Regulation
creating the Guarantee Fund for the EIB.
40. How will the EIB provide these financial resources? Does this reduce other
EIB activities accordingly?
No, the risk-bearing capacity will allow the EIB to increase its volumes of lending to activities
with a higher risk profile. This will be additional and complementary to the current EIB
activities. The EIB will adjust its borrowing activities for 2015-2017 once the EFSI has been
set up.
41. Which financial mechanisms will ensure that more than €60 billion of
financial capacity will be available to the ESFI based on an initial input of
€21bn? What do you mean by "risk bearing capacity "?
From a financial point of view, this multiplier effect is obtained by the combined effect of
the EIB issuing additional bonds on the markets in order to finance projects with a higher
level of risk, together with the blending of the existing and diversified EIB portfolio. The
existence of a €21billion risk-bearing capacity means that there is a capacity of public
funding to absorb significant losses. For private investors wishing to invest in a certain
project, this means that they are reassured that they have a safety net against potential
losses ("a first loss-protection").
42. The EFSI is supposed to be a trust fund within the EIB group. Can the
Commission provide further details as to the future legal status of the
EFSI? In particular, how would the EIB be concretely involved and work
within the EFSI?
The EFSI will be a separate account managed by the EIB. It will have its own accountability
arrangements, clear decision-making procedures and dedicated staff.
43. How will the Commission ensure a full involvement of the European
Parliament in the definition and implementation of the Investment Plan?
The proposed Regulation is based on Articles 172, 173, 175(3) and 182 TFEU which foresee
adoption by co-decision, meaning that the co-legislators, the European Parliament and the
Council, decide on an equal footing.
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39. The EFSI is supposed to start working at the beginning of 2015 thanks to a
"frontloading "of the €5 billion EIB participation. How will this work
concretely?
The EIB will take all the preparatory steps at the beginning of 2015 to be able to sign
commitments, without waiting for the publication in the Official Journal of the Regulation
creating the Guarantee Fund for the EIB.
40. How will the EIB provide these financial resources? Does this reduce other
EIB activities accordingly?
No, the risk-bearing capacity will allow the EIB to increase its volumes of lending to activities
with a higher risk profile. This will be additional and complementary to the current EIB
activities. The EIB will adjust its borrowing activities for 2015-2017 once the EFSI has been
set up.
41. Which financial mechanisms will ensure that more than €60 billion of
financial capacity will be available to the ESFI based on an initial input of
€21bn? What do you mean by "risk bearing capacity "?
From a financial point of view, this multiplier effect is obtained by the combined effect of
the EIB issuing additional bonds on the markets in order to finance projects with a higher
level of risk, together with the blending of the existing and diversified EIB portfolio. The
existence of a €21billion risk-bearing capacity means that there is a capacity of public
funding to absorb significant losses. For private investors wishing to invest in a certain
project, this means that they are reassured that they have a safety net against potential
losses ("a first loss-protection").
42. The EFSI is supposed to be a trust fund within the EIB group. Can the
Commission provide further details as to the future legal status of the
EFSI? In particular, how would the EIB be concretely involved and work
within the EFSI?
The EFSI will be a separate account managed by the EIB. It will have its own accountability
arrangements, clear decision-making procedures and dedicated staff.
43. How will the Commission ensure a full involvement of the European
Parliament in the definition and implementation of the Investment Plan?
The proposed Regulation is based on Articles 172, 173, 175(3) and 182 TFEU which foresee
adoption by co-decision, meaning that the co-legislators, the European Parliament and the
Council, decide on an equal footing.
18
