European Investment bank
After the European Central Bank, European Investment Bank is the second most important financial institutions of the European Community.
The European Investment Bank was established in the Treaty of Rome establishing the European Economic Community (Article 29 and 30) in 1957.
Each country entering the European Union must fulfill the obligations of payment of the founding capital of the European Investment Bank.
This bank is a legal entity, is headquartered in Luxembourg and is independent in its work.
The Bank manages its own statutory bodies, namely: Board of Governors, Board of Directors, Management Committee and Audit Committee.
Each member state has its representative in the Council of Governors, which is ministerial. Usually they are the ministers of finance, economics or persons responsible for the Treasury.
The Board of Governors is the body responsible for determining and conducting general and credit policy of the bank, the decision to increase the founders’ equity including the approval of the bank’s activities outside the territory of the Member States of the European Union.
Within the organizational prerogatives of the Council of Governors appoints the members of the Board of Directors, Board of Directors and Audit Committee, and also review the annual reports of these bodies as well as a financial report on the operations of the bank.
The Board of Directors has as many people as there are member states of the European Union and 18 deputies. The members of the Board of Directors proposes each Member State of the European Union (28 members), the European Commission, while deputies are elected by special conditions.
The Board of Directors is a body of the European Investment Bank to conduct the policy of the Council of Governors approving loans and granting guarantees and conclusions about taking a loan. The competence of the board of directors, are making proposals for changes to the credit policy of the European Investment Bank.
European Investment Bank operates and cooperates with other financial institutions under the general principles banker guarantee with a specific function. The task of the Bank’s investment is specific and it differs from other banking organizations that aim to gain profit basis through interest. Because the interest rates of the European Investment Bank is 1%.
Bank loans and guarantees from the European Investment Bank aimed at the realization of the project, which should enable the development of the member countries of the European Union.
These loans are used for the realization of projects in the field of infrastructure, transport, telecommunications, electricity production, agriculture etc.
Clients of the European Investment Bank are members of the European Union, public institutions, private companies based in a Member State. The requirement of belonging to the company does not mean that I project must be located in the territory of the Member States of the European Union. About 10 percent of the funds, according to previous practice, approved for operation of projects outside the EU member states. It should be noted that in the implementation of projects by the European Investment Bank loans to participate in their half of the total value of investments.