EIB and ICO provide 1 billion euros in financing and to foster internationalisation of Spanish SMEs

As part of the agreement, the ICO will top up the financing provided by the EIB with its own additional contribution of another 500 million euros, such that the total volume of these funds amounts to 1 billion euros. The Vice-President of the EIB, Román Escolano, and the President of the ICO, Pablo Zalba, signed the two loan agreements on Monday, 12 December at an event in Luxembourg in the presence of the President of the EIB, Werner Hoyer.

The first loan, for a sum of 250 million euros, is allocated to finance long-term investments to Spanish small-and medium-sized enterprises, which may enjoy beneficial conditions in terms of maturities and interest rates. The previous similar agreement between the EIB and the ICO enabled more than 7,000 projects by Spanish companies to be financed, the majority of them in the trade and industry sectors, thus stimulating economic growth and job creation.

Support for exports

The EIB and the ICO will also provide liquidity so that Spanish SMEs and mid-caps can internationalise their activities. The second loan from the EIB signed on Monday, for a sum of 250 million euros, will be allocated to supporting the ICO Export Credit Line to finance the advance payment of invoices issued by SMEs and independent contractors from their export activity, together with costs prior to the production and preparation of goods earmarked for exportation.

At the event to sign the loan agreements, the Vice-President of the EIB, Román Escolano, highlighted "the positive impact of these two agreements for job creation in Spain. SMEs and mid-caps are key vehicles for economic growth in our country, and the loan signed today shows the extensive cooperation between the EIB and the ICO in jointly supporting the provision of financing for our companies".

For his part, the President of the ICO, Pablo Zalba, stated that "the ICO, through its credit lines, and thanks to this collaboration with the EIB, will continue supporting Spanish companies, SMEs and independent contractors, offering them financing under very favourable conditions and fostering their internationalisation, which in turn will have a significant impact at a macro-economic level in our country, and will result in greater economic growth and job creation".

Through these two loans, the EIB and the ICO are backing both the financing of SMEs and the foreign trade sector, two of the main drivers of job creation, given that, according to the estimates from the European Commission, some 14,000 new jobs are created for every 1-billion euro increase in exports.

This type of financial operation also allows the ICO to position itself as a benchmark financier in Spain in supporting and boosting the foreign trade sector in line with the change in trend in the Spanish economy. Last year, the ICO Export Credit Line allowed exports to be financed by more than 43,000 companies for a sum of almost 3 billion euros.

Over recent years, the ICO has strengthened its strategy to support the internationalisation and exports of Spanish companies, SMEs and independent contractors, by setting up various financing mechanisms that cover all the needs for their internationalisation, from debt instruments to guarantees and capital holdings.

Note

The European Investment Bank (EIB) is the European Union's long-term financing institution. Its shareholders are the EU Member States. The EIB facilitates long-term financing for viable investment projects with the aim of contributing towards the EU's policy goals.

The Spanish Official Credit Institute (ICO) is a public bank with the legal status of a public business institution, under the umbrella of the Ministry of Economic Affairs and Competition, through the State Secretariat for Economic Affairs and Corporate Support. As a public bank, the ICO grants loans to finance corporate investment and liquidity operations, both within Spain and abroad, either through the mediation of financial institutions or through direct financing. In addition, as the State's Finance Agency, the ICO manages official financing instruments, which the Spanish State provides to boost exports and development aid.