Lending Approval Process
EUROFIMA’s core activity and public mission consist of supporting the development of rail transportation in Europe by providing its shareholders, 25 national railway operators, and other railway bodies with cost-effective financing to renew and modernize their railway equipment. The eligibility criteria and general procedures for granting this support are outlined in EUROFIMA’s constitutive documents (Basic Agreement, Convention, Statutes) as well as in its Internal Policy Guide.
The conservative lending policy paired with the various layers of support granted in the constitutive documents result in a high-quality and resilient loan portfolio, which has never suffered a loss in the entire history of EUROFIMA.
Requests for financing from railway operators are evaluated through a thorough approval process consisting of three phases:
Internal due diligence:
EUROFIMA’s internal teams appraise the economic, financial, legal and technical aspects of each railway project and evaluate any potential risk related to it. Particular emphasis is put on the technical and economic evaluation of the rolling stock which collateralizes the requested financing. If necessary, external consultants are involved to support the internal due diligence.
Approval from governing bodies:
The General Assembly sets the amounts which can be borrowed and subsequently used for lending purposes. The Board of Directors approves the financing requests.
Upon conclusion of the financing, EUROFIMA monitors the implementation of the railway project, the status of rolling stock collateral and any systemic risk that may deteriorate its position as lender.