Potholes ahead: The EIB and Brexit

The Times has reported that the European Investment Bank (EIB) will halt investments into the UK as a result of Brexit. The shareholders of the EIB are the 28 Member States of the European Union. To become a shareholder of the EIB a country must be a Member State of the European Union. Currently, through its membership with the EU, the UK contributes about 16 per cent of the capital in the EIB; the EIB has invested £6.9bn in infrastructure projects in the UK in 2016, including a £122m loan for the Midlands engine.

With the decision to leave the EU, the UK might face an end to EIB finance. This could have serious consequences to providers of British infrastructure. According to the FT, the EIB has outstanding loans in the UK worth more than £48bn.

Jonathan Taylor, Vice President of the EIB, will brief Asia House corporate members on EIB’s operations in Asia, green finance, and China’s Belt & Road Initiative.