LUXEMBOURG (BNO NEWS) -- The European Investment Bank (EIB) on Thursday announced the allocation of up to €6 billion ($7.6 billion) in support for the democratic transitions in Egypt and Tunisia.

EIB President Philippe Maystadt said that the additional resources for the region were granted as part of the bank's rapid, concerted and effective action in support of the democratic, economic and social transition after the popular uprisings.

"In order to put down lasting roots in society, democracy must be based on economic and social growth and development policies that are able to provide the younger generation with new prospects for the future," added Maystadt.

In the aftermath of the Tunisian revolution, EIB agreed with the caretaker government to launch a series of projects in support of employment, small and medium-sized enterprises, modernization of transportation and the expansion of energy generation.

So far, €300 million ($380 million) in EIB loans have been approved to meet the fore mentioned needs and will be deployed from July onwards. In Egypt, the EU bank and ruling military authorities launched priority projects on infrastructure, energy, water, job creation and transportation.

The EIB identified three priority areas for its projects until 2013: tackling high unemployment, promoting social integration and supporting small and medium-sized businesses.

Since 2002, EIB has facilitated investment worth more than €12 billion ($15.2 billion) in support of these countries as part of the EU bank's mission of continue supporting the democratic reform and economic development in the Mediterranean region.

Furthermore, Maystadt said that the bank will propose holding a regional conference on the financing of small and medium-sized enterprises in Tunis by the end of the year. The proposal will be discussed by EU Member States at the annual FEMIP meeting in Brussels on July 12.

FEMIP (the Facility for Euro-Mediterranean Investment and Partnership) was set up by the EIB in 2002 to provide support for economic and social development in the Mediterranean.

In 2010, FEMIP increased its financing by 60 percent to €2.6 billion ($3.67 billion), the leading development investor in the Mediterranean region. By the end of 2010, its total financing commitment grew to over €12 billion ($16.95 billion).

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