U.K.'s Hammond Seeks to Ease Fears Over Access to EIB Funding

By Jason Douglas Features Dow Jones Newswires

U.K. Treasury chief Philip Hammond will on Thursday seek to dispel fears that Britain risks losing access to financing from the European Investment Bank while it negotiates its exit from the European Union.

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The Chancellor of the Exchequer will say at an annual address to bankers in London's financial district that the U.K. is in talks with EIB officials to ensure the institution continues to offer loans for infrastructure and other projects while Brexit talks are ongoing, according to excerpts of his prepared remarks released by his office in advance.

"Investors need certainty in order to continue to support the U.K. economy and create jobs as we leave the EU," Mr. Hammond is due to say.

The U.K.'s outstanding loans from the EIB amount to 48 billion euros ($54 billion), the Treasury said, highlighting the role the institution plays in financing projects ranging from trams in Manchester to college campuses in London.

Britain's planned departure from the EU, expected in 2019 if Brexit talks conclude on schedule, had raised questions about whether the Luxembourg-based bank would continue to support U.K. projects.

Prime Minister Theresa May is currently in talks with Northern Irish lawmakers over forging a loose alliance to support her government after an election Thursday cost her governing Conservative Party its Parliamentary majority.

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Write to Jason Douglas at jason.douglas@wsj.com

(END) Dow Jones Newswires

June 15, 2017 01:14 ET (05:14 GMT)