On the draft Council decision on amendment of the EIB's Statute

On 15 September 2024, the European Investment Bank (EIB) submitted to the Council a request to amend the first subparagraph of Article 16, paragraph 5 of its Statute.

This follows the procedure laid down in Article 308 TFEU, according to which “[t]he Council acting unanimously in accordance with a special legislative procedure, at the request of the European Investment Bank and after consulting the European Parliament and the Commission [....] may amend the Statute of the Bank.”

The aim of the targeted amendment proposed by the EIB is to implement a recommendation stemming from the G20 commissioned review of Multilateral Development Banks’ (MDB) capital adequacy frameworks (‘the CAF Review’), namely to remove statutory lending limits from their statutes. The underlying intention of the change is to give the relevant governing bodies of MDB full authority over risk management metrics and leverage metrics. As per the proposed change, the maximum 250 % gearing ratio in the EIB statute should be replaced by an unanimous decision by 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. Finally, the ratio would especially penalise equity investments. In anticipation of the approval of the proposed amendment, the Board of Governors unanimously decided in July 2024 to increase the Gearing Ratio of the Bank to 290 %, in order to allow the Bank to reap its full potential in support of EU priorities and to close the investment gap.

The rapporteur supports the proposed amendment to the EIB statute, recognizing that it aligns with modern financial standards. At the same time, he emphasizes the importance of maintaining the unanimity requirement as this ensures that any revisions to the maximum gearing ratio will continue to have the backing of all Member States, preserving a balance of power. While the rapporteur acknowledges the possible challenges posed by the current gearing ratio limit of 250% for the Bank’s 2024-27 Strategic Roadmap, he firmly asserts that any statutory changes must not compromise financial discipline or reduce transparency. It is crucial that the Bank remains committed to robust risk management practices, safeguarding public funds.

Given the tight consultation timeline given by the Council to the EP, the rapporteur expects a swift agreement on the amendment to the EIB statute in the Council.

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