Publish Date : 08-Dec-2016
The European Investment Bank (EIB) and the Wallonia-Brussels Federation (FWB) concluded a loan agreement of EUR 600 million to finance the investment program of the FWB in the sectors of education, research, sports and culture. MM. Rudy Demotte, Minister-President of the FWB, Andr Flahaut, Minister of Budget and Pim van Ballekom, Vice-President of the EIB signed a first tranche of 400 million euros, the highest ever by signing the EIB in Belgium.
The Wallonia-Brussels invests each year in the order of 300 million in infrastructure.
Whether for the renovation of existing buildings or building new infrastructure and better adapted to current needs, these major investments can not fully be realized on equity. Therefore, in order to carry out its commitment to provide citizens with quality infrastructure, the Wallonia-Brussels Federation resorts to borrowing.
At the launch of Juncker map - broad European economic recovery plan by the public and private investment - Minister-President Rudy Demotte had visited the EIB in Luxembourg, with the Directorates General of Infrastructure and Budget and Finance Ministry of Wallonia-Brussels. "The purpose of the visit was to think about how to work together despite the brakes posed by SEC standards for government investment," says Rudy Demotte.
Following the introduction of an application for funding and the outcome of an investigation procedure which lasted nearly nine months, the Bank is now able to offer the Federation Wallonia-Brussels largest operation financial ever in Belgium: funding 600 million, repayable in 20 years, which will implement an investment program of just over 1.3 billion over 5 years.
The EIB, rated 'AAA' and therefore able to finance flooring market rates, will offer to the Federation, to support its investment program in educational, cultural, sports and research interest rates again more advantageous than those it already has thanks to its good credit rating and proactive management of its debt. The economy will be carried out by the Federation could go up to 20 million euros.
The Federation's investment program involves the construction and renovation of schools, youth welfare centers, public sports facilities, cultural infrastructure and the realization of transversal operations to improve the energy performance buildings. Besides infrastructure-related projects, 7.1% of the investment program will be dedicated to scientific research.
These investment projects were already included in budget plans and projections of the Federation that address needs related to population boom, the contract allows the FWB to have a new source of funding less expensive. "If our government chose the path of carrier support measures of social progress in the path of austerity, however, we are continuing our responsible and rigorous management of public funds. This contributes directly as it will allow us to reduce the burden of debt. Moreover, in terms of visibility and reliability, the contract maintains the confidence of existing investors and credibility to the Wallonia-Brussels Federation to potential investors, which I can only rejoice, " says the Minister-President Rudy Demotte .
"The historic agreement reached today between the EIB and FWB illustrates better governance moves within the department, based notably on financing, on a diversification of investment sources. This loan will allow us to actually start the implementation of 1,500 projects already announced and continue the search for funding for future projects, "says Frederic Delcor, Secretary General of the FWB.
According Pim van Ballekom, Vice-President of the EIB "We sign a landmark funding for the Wallonia-Brussels Federation and resolutely turned towards the future. Quality teaching facilities and modern amenities, green and sustainable is essential to meet the challenge of training, integration and ultimately of youth employment. Here is played the development of the Knowledge Economy, a key element for the future of your country and of Europe in a globalized world market, and an action priority for the EIB as Bank of 'European Union ".
And Minister Andr Flahaut concluded "It is important, in times when the economic situation is not looking good, to invest not only boost growth but mainly bet on future generations! It seems to me important to invest in infrastructure to meet the challenges of population growth and accommodate young children, students, researchers in the best conditions. "
The European Investment Bank (EIB) has undertaken this important funding for its priority policies as the European Union's bank, is the Economy of Knowledge, Research and Innovation, Action against climate change.
In the education sector, essential for the growth of the knowledge economy, she devoted the last 15 years, 36 billion euros for projects of all types supporting education in Europe and around the world.
It is in 2013 that 300 million commitment was entered in favor of schools in the Federation Wallonia-Brussels - including 210 million signed with Belfius and CBC as intermediaries for these funds, and co-financiers. These credit lines used for completed or ongoing projects are still active.
In Belgium, the EIB is also committed alongside the UCL (Catholic University of Louvain) for its major infrastructure projects and student housing in Louvain-La-Neuve, as well as with the KUL (Katholieke Universiteit Leuven ) to finance the 'health Sciences Campus' (an Education partnership - Research-health Care with university clinics).
The European Investment Bank, whose shareholders are the Member States of the European Union, is the long-term financing institution of the EU. It provides long-term funding to support quality investments to help achieve the EU headline targets. Its financing in Belgium amounted to 2.1 billion in 2015.
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