Staying the course: The EIB’s reluctant COVID-19 response

Key Points

• The EIB’s response to the COVID-19 crisis consisted only of small changes to its existing operations, both regarding its total lending and lending to the health sector.

• Through the European Guarantee Fund, the EIB mobilised €187 billion of additional investments.

• To protect its credit rating, the Bank eschewed riskier operations and sought financial guarantees.

• The EIB’s reliance on the financial sector to transmit its policy had drawbacks both for the control of the use of funds and for transparency.

• Whereas other EU institutions implemented significant new policies in response to the pandemic, the EIB’s business model limited the Bank’s ability to adapt to an unprecedented shock.