Basel Committee accords MDB status to EIF

The European Investment Fund (EIF) is pleased to announce that, at the Basel Committee's meeting on 14-15 January 2004, it was decided to accord the status of Multilateral Development Bank to EIF, which will permit national supervisors to apply a 0% risk weight to the EIF under the proposed New Basel Capital Accord (Basle II).

The decision, effective immediately, also holds advantages for financial institutions presently working with EIF, as the new status permits a 20% risk weight, not only under the EU Directive on Solvency Ratio, but also under the current Basel Accord, allowing for reduced regulatory capital allocation on assets guaranteed by EIF.