Bhutan and European Investment Bank or EIB signed the Framework Agreement in the capital, yesterday. The Agreement is expected to pave way for collaboration between Bhutan and EIB. With this signing, Bhutan can now avail soft loans from EIB to finance hydropower projects, climate change initiatives and development of small and medium enterprises and other sectors in the country. EIB, which is the financial arm of European Union, is the largest financial institution in the world. It finances projects over 150 countries outside European Union.