The European Investment Bank (EIB) and the Official Credit Institute (ICO) plan to sign a € 1 billion loan tomorrow in Madrid to finance projects for SMEs and midcaps (mid-cap companies). This line of credit is the largest amount granted by the EIB to Spain for financing SMEs. The ICO, for its part, undertakes to contribute another 1,000 million euros for the same purpose.
The funds obtained will be used to finance investments, working capital and sale of goods and services of SMEs and midcaps. The term of each provision may be up to 12 years, with a maximum of four years of lack of principal. The interest rate may be fixed or variable, at the discretion of the ICO, and will be determined on the application request date.