The European Investment Bank is a quiet player in international development, rarely making headlines like the World Bank or Asian Development Bank. But the European Union’s bank has lessons to share.
Since its founding nearly 60 years ago, the EIB has been a “crowding-in bank” focused on long-term investment products, said president Werner Hoyer. The bank lends about $90 billion annually, $8.4 billion of which went outside of the EU in 2016. That spending triggered a private sector investment of about $300 billion, Hoyer said.
“We are used to multiplying scarce public resources,” Hoyer explained in a video interview with Devex. “I don’t believe in the multiplication of public budget funds for development, we’ll have to do more with not less but not much more.”
Banks investing in development need to operate at the highest technological and financial standards, and banks like the EIB must prove that they are capable, he said.
For more on the EIB and Hoyer’s thoughts on what needs to be done to leverage more investment dollars for development, watch the video above.
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