The European Investment Bank (EIB)will start its operations in the country. Bhutan and the Bank officially acknowledged the ratification of the Country Framework Agreement. The European Investment Bank is the Bank of the European Union. It is the biggest multilateral financial institution in the world and one of the largest providers of climate finance.
To this effect, the Foreign Secretary, Ambassador Pema Choden, signed the statement with the Vice President of the Bank at their headquarters in Luxembourg on Monday.
The Bank will significantly expand the existing EU economic support for Bhutan, especially on climate action, climate resilience and energy efficiency.
Only the government would be able to borrow from the European Investment Bank under the framework agreement.
“Entering into ratification agreement with EIB doesn’t mean that we are going to borrow upfront. It is just an indication that we are being an active member with the EIB so that we are secured in the near future that if the lending policy conditions from the other developmental banks are unfavourable, we will at least have an option to switch on to another source of financing,” said Finance Minister, Namgay Tshering.
The Finance Minister said they will not establish an office in Bhutan but will operate from the offices based in the region. The Parliament ratified the European Investment Bank framework agreement in March last year.
“We have dissected and decoded every 13 clauses and have engaged in closer dialogue with EIB. So, EIB was gracious enough and very considerate that they were willing to amend ratification agreement based on the suggestion made by National Council,” added the Finance Minister.
The Finance Minister said Bhutan is now in partnership with four multilateral development banks.
Samten Dolkar
