EC plans new €1.5bn guarantee facility

The European Commission (EC) is to add to its policy of promoting financial instruments that support private sector infrastructure financing with the European Fund for Sustainable Development (EFSD), a new, estimated €1.5bn ($1.64bn) guarantee facility expected to be launched this year. Officials calculate the facility could be used in parallel with loans from the African Development Bank and other financial institutions, encouraging partners to take on more risk by providing a ‘liquidity cushion’ with significant multiplication effects.