The European Investment Banks (EIB) is to make up to €40bn available to counteract the economic crisis caused by the Covid-19 outbreak.
The organisation has also called on its members to set up a further guarantee for small and medium sized firms.
The bank said the money could be made available at short notice.
It will be supported by guarantees from the EIB Group and EU.
"We need a strong European response and we need it now. Europe needs another 'whatever it takes' moment," said EIB President Werner Hoyer.
"The EU bank will help in this crisis as it did in every past moment of hardship in Europe, be it due to economic downturns or natural catastrophes."
"We will immediately focus on assisting small and medium companies and mid-caps. They badly need help, and they need it quickly."
Additional funding will be made available for the healthcare sector to assist it with emergency infrastructure and the development of cures and vaccines.
The EIB also said Ireland would benefit from the measures.
"The EIB Group recognises the impact that the Corona virus is already having on the Irish economy, employment and daily life," said Andrew McDowell, European Investment Bank Vice President
"Detailed discussions with Irish government, the SBCI and other stakeholders are taking place to ensure that this package of new measures to strengthen resilience to the virus shutdown can rapidly support sectors in Ireland most vulnerable to this unprecedented shock."