BoV invests €1.5m in European Investment Fund

Bank of Valletta has invested €1.5 million in shareholding in the European Investment Fund, a tripartite organisation involving the European Investment Bank, the European Commission and a number of European banks and financial institutions.

The EIF, which celebrates its 10th anniversary next month, has 2,000 shares, of which 208 are held by 31 banks and financial institutions.

BoV has invested in five shares. To put this into context, Barclays Bank holds three shares, as does Bank Austria Creditanstalt.

EIF supports the growth and creation of enterprises, through capital and guarantee instruments, using either its own funds or those available within a framework of mandate entrusted to it by the EIB or the European Commission.

In 2003, its guarantee volumes increased significantly, with commitments reaching €2,251 million.

The EIF hopes to improve the amount spent in Europe on research and development, EIF chief executive Francis Carpenter said at the press conference held at Le Meridien Phoenicia, in Floriana yesterday to announce BoV's investment.

The impact of the agreement on local corporate investors who require loans will be much higher once an agreement is finalised between EIF and Malta Enterprise. This will enable local enterprises to obtain funding, with part of the risk backed up by the EIF.

Talks are currently underway on this agreement.