The European Investment Bank (EIB) will deliver €7.5bn to regions hosting large numbers of refugees over the next five years, said EIB president Werner Hoyer.

Hoyer added that the EIB is now proposing to lend an additional €6bn to the public and private sectors this year.

“This would catalyse another estimated €15bn of investment. Taken together, we are talking about more than €35bn of investments on the ground,” said Hoyer. “With this we could provide services like clean water, energy and electricity in regions where services are stretched, and improve education, healthcare, local transport and urban services.”

He noted that this will help to ensure that refugees and host communities alike have access to education and healthcare. In addition to supporting the creation of jobs through more support for small businesses and micro-enterprises, encouraging them and other companies to take on more young people, offer training, and help integrate refugees into their host country.

Hoyer stressed that the EIB’s External Lending Mandate will need to be extended and part of the lending requirements would need to be accompanied by grant financing.

This new initiative from EIB, which aims to support regions outside of Europe that are significantly affected by the refugee crisis, has been welcomed by EU heads of state and governments who met in Brussels on Tuesday.

In the light of the ongoing refugee crisis, the European Council requested in March that the EIB rapidly mobilise additional financing in support of sustainable growth, vital infrastructure, and social cohesion.