ICO and CEB provide €600 million to support SMEs and self-employed in Spain
The purpose of the arrangement is to finance investment projects and business liquidity requirements to boost growth and job creation
ICO and the Council of Europe Development Bank (CEB) have agreed a €300 million loan to finance the self-employed and SMEs in Spain. This loan will mean a total injection of €600 million, since ICO will match the amount of the CEB loan.
The agreement was signed in Madrid this afternoon between the chairwoman of ICO, Emma Navarro and the Governor of the CEB, Rolf Wenzel.
At the signing ceremony Ms. Navarro said, "These types of operations are especially important for SMEs, which are the main drivers of economic growth and job creation in our country". She also said "The signing of this deal is yet another example of the excellent relations between ICO and the CEB, particularly when supporting these types of businesses".
The ultimate aim of this loan is to create and preserve jobs in SMEs in Spain and to improve their competitiveness by financing investment projects and their liquidity needs. The financing will be distributed through ICO's second-floor facilities.
The loan signed today is the third granted by the CEB to ICO following the signing of the €280 million loan in November 2014 and €300 million in December 2013. In each case, ICO has pledged to match the loan with the same amount bringing the total amount provided by the two institutions to support SMEs and the self-employed to almost €1.8 billion.
This agreement brings the total number of financing transactions signed with international financial institutions, such as CAF, KfW, EIB and CEB, to 22 since 2012. ICO has strengthened the channelling of funds from these types of institutions as a strategic part of its financing in order to continue providing loans to SMEs under beneficial conditions.
About the Council of Europe Development Bank
Created in 1956, the CEB is the oldest multilateral financial institution in Europe. Its shareholders are the 41 European countries. The Development Bank funds social projects and responds to emergencies, helping to improve living conditions and social cohesion in the most economically disadvantaged regions of Europe. Its activities play a key role in financing social infrastructure.
As a state-owned bank, ICO grants loans to finance investments and provide liquidity to companies, both in Spain and abroad, either through intermediary financial institutions or directly.
Furthermore, as the State Financial Agency, ICO manages the official financing instruments that the Spanish state uses to promote exports and support development.