PURPOSE: to amend the statutes of the European Investment Bank (EIB).
LEGISLATIVE ACT: Council Decision (EU) 2025/504 amending Protocol No 5 on the Statute of the European Investment Bank.
CONTENT: the aim of the targeted amendment to the EIB Statute is to implement a recommendation arising from the G20-requested review of the capital adequacy frameworks of multilateral development banks (MDBs), namely to remove statutory lending limits from their statutes. The underlying intention of the amendment is to give the empowered governing bodies of MDBs full competence over risk management indicators and leverage indicators. The amendment provides for the replacement of the maximum capital leverage ratio limit in the EIB Statute, set at 250%, with a unanimous decision of the Board of Governors.
According to the EIB Group, the current maximum gearing ratio of 250 % would severely constrain the 2024-27 Strategic Roadmap. In addition, it would neither take into account the quality of the EIB portfolio nor credit enhancements, such as EU budget guarantees. Moreover, this ratio particularly penalises equity investments, such as those from the European Investment Fund.
On 21 June 2024, the Board of Governors of the EIB unanimously decided to increase the gearing ratio to 290 %, in order to enable the EIB Group to build on its strong capital position, robust risk management and governance framework, to deploy its full potential in support of Union priorities and to close the investment gap. That increase is subject to the entry into force of this Council Decision.
In Article 16(5) of Protocol No 5 on the Statute of the European Investment Bank, annexed to the Treaty on the Functioning of the European Union, the first subparagraph is replaced by the following:
‘The aggregate amount outstanding at any time of loans and guarantees granted by the Bank shall not exceed a maximum ratio in respect of its subscribed capital, reserves, non-allocated provisions and profit and loss account surplus to be established by the Board of Governors acting unanimously. The latter aggregate amount shall be reduced by an amount equal to the amount subscribed (whether or not paid in) for any equity participation of the Bank.’.
ENTRY INTO FORCE: 15.3.2025.