The CEB and Instituto de Crédito Oficial sign €280 million loan agreement to finance MSMEs

The CEB and Instituto de Crédito Oficial sign €280 million loan agreement to finance MSMEs

The Governor of the Council of Europe Development Bank (CEB), Rolf Wenzel, and the Chairwoman of Instituto de Crédito Oficial (ICO), Irene Garrido, today signed a Framework Loan Agreement for €280 million to support micro, small and medium-sized enterprises (MSMEs) throughout Spain.

The CEB loan, which was approved by the CEB's Administrative Council at its meeting of 6-7 November 2014, will be matched by ICO at least with the same amount. It will provide Spanish MSMEs with cost-effective funding for the financing of their long-term productive investments.

More specifically, the loan will finance through accredited financial intermediaries the purchase by MSMEs of fixed assets, such as office and manufacturing premises, production installations, vehicles and equipment. The aim is to strengthen their competitiveness and boost job creation and preservation.

As Spain's public development financial institution, ICO plays a key role in facilitating access to medium- and long-term financing for MSMEs. The agreement signed today is the second loan agreement between the CEB and ICO, following the approval of a €300 million credit line for MSMEs in December 2013.