EIB, ICO channel EUR 1.5 bn into SMEs in Spain

14 / 05 / 2020

By Marwa Nassar - -

The European Investment Bank (EIB) and the Instituto de Crédito Oficial (ICO) have agreed to extend EUR 1.5 billion for supporting the self-employed, SMEs and mid-caps in Spain under the plight of the coronavirus (COVID-19).

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.

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 programs, 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.”

ICO’s CEO José Carlos García de Quevedo added that “ICO is focusing all of its firepower on managing and implementing measures to alleviate the social and economic impact of the COVID-19 crisis, including this new agreement with the EIB”. He went on to stress the close cooperation between the two institutions, saying that “it is extremely important at a time like the present as it is enabling EU bank funding to be channelled into Spain’s business fabric so that the self-employed and SMEs can access the necessary finance to carry out their activity.”