The European Investment Bank (EIB) and the Instituto de Crédito Oficial (ICO) are providing the self-employed, SMEs and mid-caps in Spain with up to EUR 1.5 billion to enable them to cope with the impact of the COVID-19 crisis.
The first EUR 1 billion instalment of this financing package has been signed under an accelerated approval procedure introduced by the EIB in response to this emergency, enabling the funds to reach Spanish firms as quickly as possible.
The EIB is providing this finance on favorable terms, especially regarding interest rates, maturities and flexibility. ICO will pass on these funds through its different instruments: Mediation Lines, in cooperation with financial institutions, and direct financing programmes, to meet the liquidity needs of the self-employed, SMEs and mid-caps in order to safeguard jobs and support economic recovery.
“We are very pleased to be once again joining forces with ICO, especially in these times of crisis. This agreement makes clear the EIB’s firm commitment to supporting smaller Spanish businesses, meeting their most urgent financing needs triggered by the pandemic”, said EIB Vice-President Emma Navarro, responsible for the Bank’s activity in Spain. “At the EIB, we will continue working to help alleviate the economic fallout of the COVID-19 crisis in Spain.”
According to European Commission data, Spain’s small businesses account for 72% of employment in the country. The EUR 1.5 billion that the EIB has approved providing to ICO under this operation will help to support small and medium-sized Spanish firms employing more than 230 000 people.
Original source: EIB
Published on 14 May 2020
