European Investment Bank

Definition

The European Investment Bank (EIB) is a publicly owned international financial institution whose shareholders are the EU member states. It makes long-term loans intended primarily for capital projects that further EU policy objectives.

Analogy

Consider EIB as a big bank where all parents (EU countries) pool their money together to give long-term loans or allowances to their children (capital projects) who show promising futures aligned with family values (EU policy objectives).

Related terms

Capital Projects: These are significant investments made by organizations or governments, such as building infrastructure. They're like buying a new house instead of renting one.

Publicly Owned Institutions: These are entities controlled by government entities. Imagine your local public library which is funded and operated by your city government.

Policy Objectives: Goals set out by a political entity such as government or political party. Like setting New Year resolutions but on a larger scale.