§ Mr. Andrew SmithTo ask the Chancellor of the Exchequer how the level of allocation of European Investment bank loans for projects in the United Kingdom in 1993 changed from previous years; and what were the reasons for the difference.
§ Mr. Nelson[holding answer 29 March 1994]: The following is the information: 879W
European Investment Bank lending in the United Kingdom (Loan signatures) Year £ million Million ecu 1993 1,502 1,929 1992 1,796 2,407 1991 1,467 2,091 1990 1,365 1,893 1989 1,084 1,623 Figures for European Investment bank lending in the United Kingdom, over the past five years, are shown in the table. It should be noted, however, that these do not reflect a pre-planned lending programme, with fixed amounts allocated in advance to lending in the United Kingdom.
The European Investment bank has a dual character, as both a development institution, and as a bank. It lends to capital investment projects which must both, contribute to the development of the Community, and meet normal banking criteria, especially that of financial viability. As a consequence, it does not attempt to set overall, national, or sectoral targets for lending, but rather responds to market demand, considering every application for a loan on an individual basis, against its objectives.
The annual outturn figures published by the European Investment bank reflect this process, but they can also be influenced by decisions by the bank and promoters as to exactly when they will choose to sign for a loan, once it has been approved. Delays in signing agreed loans over a year end can have a significant impact on the figures. This occurred in 1993, when, for this reason, an increase in approvals of loans was not matched by a corresponding increase in loan signatures.