Medium Term Loans

EIB introduced an important service in expanding its financing for the industrial sector by providing medium term loans to existing projects. These loans are to help such projects to modernize their buildings and renew their plant and equipment, or refinance their commercial loans. The period of these loans should not exceed five years, in addition to a grace period which is considered compatible with the circumstances of the project. In general, the purpose of these loans is a) to help reduce the financial burden of commercial loans and b) to enhance the efficiency of the project by helping to acquire new machinery and advanced technology, thus enabling it to achieve better quality, higher output, lower costs, and greater competitiveness in local and foreign markets.