CEB signs €100 million loan agreement to support MSMEs in Portugal

The Governor of the Council of Europe Development Bank (CEB) Rolf Wenzel was in Lisbon for meetings with senior officials and to sign a €100 million framework loan agreement with Instituição Financeira de Desenvolvimento (IFD) to support Portuguese micro, small and medium-sized enterprises (MSMEs).

MSMEs are vital for the Portuguese economy. Yet they face constraints when it comes to accessing financing, including a high financing cost. The funds provided by the CEB will be on-lent by IFD to MSMEs to finance their productive investments and working capital and strengthen their sustainability and energy efficiency. Special attention will be given to MSME investments in innovation, technology and renewable energy as well as to businesses in densely-populated regions. By targeting specific sectors and geographical areas, the on-lending programme aims to reduce the income gap between urban and rural areas thus reinforcing social and economic cohesion across the country.

CEB Governor Rolf Wenzel said: “As high unemployment rates in Europe persist, particularly among young people, supporting MSMEs as a way of promoting job creation is crucial. The CEB has been active in this area and, thanks to this first collaboration with IFD, we will be able to reach a large number of small businesses and local entrepreneurs across the country with little or no access to financing. We look forward to continuing and expanding our partnership with IFD in the future.”

Portugal has been a CEB member since 1976. The Bank has been contributing to the implementation of the country’s social policies, financing investments in the areas of social housing, urban development, environmental protection, health and education infrastructure, support for small and medium-sized businesses, and assistance to the victims of natural disasters. The CEB is also supporting the social integration of migrants and refugees in the country.

Original source: CEB
Published on 01 April 2019