1.17 There were other financing options, and although these would not have been likely to achieve the Government's policy objectives in 2009, they could be relevant in future.
• The French government guarantees 80 per cent of the debt, once a project is operating successfully. Although this can reduce financing costs by several million pounds, it increases public sector exposure to operating risks. Large projects in France have struggled to reach conclusion on this basis since 2008, and none closed in 2009.
• The not-for-profit European Investment Bank (EIB) is generally able to make funding available on more favourable terms (such as margins and fees) than commercial banks. Some European countries have publicly owned banks playing a similar role. Lending at similar rates was not pursued because the Treasury considered government lending should be temporary and reversible. In a future refinancing, it would be difficult to sell such loans to other parties to recover the original funding.