The European Investment Bank must reduce its levels of lending to ensure its financial strength, said its President Werner Hoyer Thursday.
"We need to gradually reduce lending volumes to pre-2008 levels to protect the financial strength of the bank," said Hoyer, who took the helm of the institution this year.
The EIB increased lending during the financial crisis but as its sovereign backers continue to come under market pressure, it is becoming more cautious in its scope.
"The current economic climate and budgetary constraints of our member states mean that we must find ways to do more with less," said Hoyer.
The bank lends to small businesses and other projects across the Europe Union and elsewhere with money raised on capital markets. It has maintained its triple-A credit rating through recent economic turmoil.
The EIB plans to continue supporting the same number of projects, but will reduce the size of the loans, or combine EU loans and EU grants, or leverage EU and member state budget resources.
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