The Council of Europe Development Bank (CEB) and MicroBank, the social bank of the CaixaBank Group, signed a new €100 million loan agreement aimed at providing financing to microenterprises, the self-employed and families with limited incomes.
Microenterprises play an important role in the Spanish economy as they account for 41% of overall employment in the non-financial business economy. For these entrepreneurs access to finance is essential for setting up or expanding their business.
The CEB loan to MicroBank aims to support job creation and to enhance social cohesion in Spain by facilitating access to financial resources for small businesses, microbusinesses and vulnerable groups. The microloans will help start-up or expand existing businesses, but they can also be used to meet the financial needs of immigrants or families in precarious situations.
Rosa María Sánchez-Yebra Alonso, CEB Vice-Governor, said: “This loan to Microbank represents the essence of the CEB and contributes to enhancing its distinctive social mission among international financial institutions. The CEB works to bolster sustainable and inclusive growth focusing on the needs of the most disadvantaged groups; reduce socioeconomic inequalities as well as support integration of refugees, displaced persons and migrants. Microcredit loans are a powerful tool to achieve these goals so that we can only expect to strengthen our cooperation with MicroBank.”
The CEB has been supporting MicroBank since its founding in 2008 through five loan operations totaling €380 million. The new funds from the CEB will allow MicroBank to continue applying particularly competitive conditions adapted to the needs of its clients.
Original source: CEB
Published on 07 November 2019
