The European Investment Bank (EIB) and European Commission signed on the 27th May 2008 a Memorandum of Understanding (MoU) aimed at furthering coordination of European Union external lending policies. The objective of the MoU is to strengthen the consistency of EIB lending with the external policy objectives of the EU by reinforcing dialogue and planning between the two institutions, so as to optimise the use of grant and loan resources.

The Commission and the EIB are privileged partners in providing financing in support of EU policy objectives. The EIB has been lending outside the EU since 1963 with the support of an EU guarantee, complementing the Commission's political and financial initiatives for third countries.

The key objective of the new EIB external mandate is to enhance the contribution of EIB financing towards EU priorities, particularly by strengthening the policy dialogue between the Commission and the EIB and through strategic planning and coherence between the external financing activities of the EIB and the Commission.

In order to provide the necessary framework for such enhanced cooperation, the Commission and the EIB have decided to conclude, a first MoU on external lending to define practical terms for dialogue, consultation and cooperation between the two institutions.

The 2006 Council Decision on the EIB external mandate foresees at least €25.8 billion of loans being made available over the period 2007-2013, broken down by region as follows:

1. Pre-accession countries:Croatia and Turkey (€8.7 billion).
2. Mediterranean: (€8.7 billion).
3. Eastern Europe: Southern Caucasus, Russia (€3.7 billion).
4. Latin America: (€2.8 billion).
5. Asia: (€1 billion).
6. Republic of South Africa: (€900 million).