The European Investment Bank (EIB) and Estonian authorities have signed a €300 million financing agreement to support investment in the green and digital transitions, BNS, a Baltic newswire, reported on June 27.

The loan is the first tranche of a larger financing agreement, and also includes the co-financing of projects to support a just transition to a low-carbon economy in East-Viru County, spokespeople for the Ministry of Finance said.

The structural programme loan (SPL) agreed is a dedicated product for the co-financing of projects backed by European Structural and Investment Funds. The total volume of investment planned is €5.2 billion, with around €3.4 billion to be financed by EU structural funds, and the rest to be provided as national co-financing, which also includes the EIB loan.

"The consequences of the pandemic and the energy crisis have only reinforced the need to accelerate the green and digital transitions," EIB Vice President Thomas Ostros said. "That is why the EU bank is delighted to sign this important loan agreement with the Republic of Estonia and support the economic and social development of the country. The EIB loan allows Estonia to kickstart the implementation of EU grant-funded projects to boost a smarter, greener and more connected society."

This will be the third EIB structural programme loan with the Republic of Estonia. The EU bank and Estonia have had two similar agreements during previous financing periods, for €550 million and €720 million, respectively, and including a COVID-19 top-up of €120 million, BNS said.