Jannik Lindbæk: More money, more responsibilities

Jannik Lindbæk, former President and CEO of NIB and Executive Vice President of IFC, says NIB is living up to its reputation as a long-term lender with a strong environmental mandate, and is pleased that the Bank’s owners have increased its capital base.

Earlier this year, NIB’s member countries increased the Bank’s capital base with EUR 2 billion on condition that the Bank strives to reach a 90% share of projects that receive a mandate rating of “excellent” or “good”, and aims to increase the share of projects in the focus sectors; energy, environment, transport, logistics and communications and innovation, to 90%.

Mr Lindbæk, who was President and CEO of NIB between 1986 and 1994, commends both the increase in resources and the prerequisite for usage.

“Underlining the Bank’s mandate and assessing how the Bank is living up to it, is a way to consolidate the Bank’s existence,” he says.

“A thorough rating of the environmental aspects of an investment may mean the difference between success and failure for a project. The environmental aspect is relevant for the competitiveness of the project. It all boils down to risk. If the project meets resistance because of potential negative environmental impact, there is an increased risk for the vitality of the project,” Mr Lindbæk says about the exacting task of mandate fulfilment.

“All the focus sectors are central and natural to NIB. There is more than enough for the Bank to do within these sectors. I am particularly glad that innovation is a focus sector, as innovation is the fuel for economic development,” he continues, adding that NIB focused on the environment also in his time.

The need for long-term credit is far from met, according to Mr Lindbæk. “There will be a constant and growing need in both the public and private sector for long-term financing. That the EIB has grown to become the world’s biggest bank is indicative of how useful and important IFIs like NIB and EIB are. They may be less glamorous than the commercial banks, but they are crucial for economic and social development,” Mr Lindbæk concludes.