Release date: 2 July 2021
Promoter – Financial Intermediary
LUZARO ESTABLECIMIENTO FINANCIERO DE CREDITO SALocation
Description
Dedicated EIB loan for small and medium-sized enterprises (SMEs) and mid-caps to finance small and medium-sized projects in Spain, mainly located in the Basque Country.
Additionality and Impact
The main purpose of this operation is to facilitate vital financial support to EU SMEs and Midcaps, enabling Luzaro to lend additional resources to allow companies to survive under the extreme conditions caused by the Covid-19 crisis.
The deterioration of the economic situation in Spain has been dramatic and unparalleled in its depth and velocity to any recession since the Spanish Civil War and the World War II. According to the National Statistics Institute (INE), gross domestic product fell 11% in 2020. That was more than the economy shrank over the five years during and after the global financial crisis that began in 2008. Moreover, given the Basque Country's strong manufacturing industry, the impact of the Covid-19 crisis has been specially strong as industrial companies faced productions stoppages due to supply chain disruptions and workforce dislocations. This operation allows EIB to partner with a local promotional institution to mitigate the adverse consequences of the pandemic through the provision of much needed liquidity.
In addition, this project eases financial constraints for SMEs and/or MidCaps that arise from information asymmetries caused by the lack of track record for such companies and high screening costs for small investment. By supporting such companies, EIB sends a positive signal to private investors and this incentivizes further financing.
Objectives
Financing of small/medium projects carried out by small and medium-sized enterprises.
Sector(s)
- Credit lines - Credit lines
Proposed EIB finance (Approximate amount)
EUR 50 million
Total cost (Approximate amount)
not applicable
Environmental aspects
Final beneficiaries will be requested to comply with applicable national and EU legislation, as appropriate.
Procurement
Final beneficiaries will be requested to comply with applicable national and EU legislation, as appropriate.
Status
Signed - 22/12/2021
Disclaimer
Before financing approval by the Board of Directors, and before loan signature, projects are under appraisal and negotiation. The information and data provided on this page are therefore indicative.
They are provided for transparency purposes only and cannot be considered to represent official EIB policy (see also the Explanatory notes).