The European Investment Bank (EIB) and the Official Credit Institute (ICO) have signed a loan amounting to EUR 500 million with the aim of increasing financing for SMEs and medium-sized companies (up to 3,000 employees) mainly in the industrial and services sector.

The EIB loan offers SMEs financing in favorable conditions at low interest. Within this agreement, the ICO undertakes to transfer the advantage of the EIB resources to the final beneficiaries. The funds will be used to finance medium and long-term investment of companies as well as their liquidity needs.

This financing line, which will be completed for another 500 million euros that ICO will contribute, will be used to finance projects located in Spain. It is estimated that around 35% of the loan amount will go to projects in regions of convergence, where SMEs are a fundamental pillar to create and maintain employment.

The last loan signed between the EIB and the ICO, also of 500 million euros, dates from November 22, 2012. Since 2008, the global volume of loans of these characteristics that the EIB has signed with the ICO amounts to 3,000 million of euros.

In 2012, the EIB allocated 13,000 million euros to finance SMEs and reached a record level that allowed to benefit more than 200,000 companies across Europe. In this same year, in Spain, the European Investment Bank contributed 2,680 million euros for new lines of credit to finance investment projects of this type of companies, having benefited 24. 280 projects.

The Official Credit Institute is a public bank that has different Mediation Lines, implemented through financial institutions, and provides financing to freelancers and companies to support investment projects and meet liquidity needs. The ICO granted in 2012, through these lines, 11,511 million euros to a total of 162,075 companies, for an average amount per company of 70,000 euros.

About the European Investment Bank (EIB):

The European Investment Bank (EIB) is the long-term financing institution of the European Union whose shareholders are its member states. It facilitates long-term financing for viable investment projects in order to contribute to the achievement of EU policy objectives.

About the Official Credit Institute (ICO):

The Official Credit Institute is a public bank with the legal form of a public business entity, attached to the Ministry of Economy and Competitiveness through the Ministry of Economy and Business Support. It has a legal nature of a credit institution, and the consideration of the State Financial Agency. As a Public Bank, the ICO grants loans to finance investment and liquidity operations of companies, both inside and outside Spain, either through the mediation of the Entities

Financial, or with direct financing. On the other hand, as a State Financial Agency, the ICO manages the official financing instruments, which the Spanish State provides to promote export and development aid.



Source of the new