The European Investment Bank has granted a EUR 500 million loan to Spain’s Instituto de Crédito Oficial (ICO) for financing the investment projects of small and medium-sized enterprises (SMEs). The loan contract was signed in Madrid this morning by EIB Vice-President Magdalena Álvarez Arza and ICO’s Chairman, José María Ayala.
This EIB loan will be used to finance small and medium-scale projects carried out by SMEs in the industrial and service sectors and the research, development and innovation field. It will help to boost the productivity of the beneficiary firms, promote the rational use of energy and diversification of energy sources and foster private enterprise in the health and education sectors. The projects eligible for financing will be located in Spain and the rest of the EU.
This is the third finance contract in support of small businesses that the EIB has signed with ICO since 2008. It forms part of the Bank’s long-standing collaboration with the institution, which dates back to 1986. The previous SME loan to ICO, signed in June 2010, has so far benefited a total of 9 143 investment projects, mainly concentrated in the wholesale and retail (3 519), manufacturing (1 217) and transport (1 329) sectors.
This loan comes under the EIB’s policy of assisting small businesses in the current economic climate by facilitating their access to capital or investment finance with long maturities, flexible disbursement schedules and low interest rates, so ensuring their sustainability and fostering job creation.
The EIB is the European Union’s long-term financing institution promoting EU objectives. Founded in 1958, it operates in the 27 EU Member States and more than 130 other countries around the globe. As an EU objective, support for SMEs is also an investment priority of the EIB.