I oppose potential EU guarantee to the European Investment Bank against losses under financing operations supporting investment projects in Iran. The EIB would face severe financial risks, because such a guarantee would: -Jeopardize EIB’s ability to raise capital on the international financial markets given US sanctions against Iran and restrict EIB’s access to the US dollar payments system (USD accounts for approx. 1/3 of EIB’s total funding volume, while US investors purchase approx. ¼ of EIB bonds); -Increase the likelihood of defaulting on obligations to pay investors and creditors in foreign currency, risking a general default on provisions contained in other EIB financing arrangements. -Undermine investors’ confidence in the EIB as any investments in Iran would conflict with US sanctions; -Raise the cost of borrowing for the EIB thus reducing its ability to provide loans. -Limit external mandate funds for investing in more stable and reliable markets. In sum, the EIB would face reputation risks and damage its credibility contributing to deteriorated transatlantic relations. It would also create a dangerous precedent of having EIB and European taxpayers cover costs for false and harmful policy that would directly benefit a terrorism sponsor state and trigger a harsh reaction from FATF.
Anna Fotyga’s written explanation of vote to the EP Resolution on Commission Delegated Decision (EU) of 6 June 2018 amending Annex III to Decision No 466/2014/EU of the European Parliament and of the Council granting an EU guarantee to the European Investment Bank against losses under financing operations supporting investment projects outside the Union, as regards Iran (C(2018)03730 – 2018/2758(DEA))
