Reform of the European Investment Bank: How to Upgrade the EIB’s Role in Development

In this briefing paper we evaluate the performance of the EIB in its external lending and policies in relation to developing economies including its response to the financial crisis. We recommend policy changes including greater absolute levels of lending to developing economies and greater risk taking to achieve “more with less”. We also recommend tailoring the mandate and lending criteria for developing countries including greater flexibility of lending criteria and standards, a crisis mandate, country level priority objectives linked to MDGs and greater blending of grants and lending. In order to support such changes the need for greater and specialist resources including staff and capital is discussed including the possibility of extending cooperation with other IFIs and the MTR feasibility study for a dedicated subsidiary.