The CEB and Instituto de Crédito Oficial sign € 280 million loan agreement to finance MSMEs
19 November 2014
PARIS - 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) in 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 loan agreement signed today is the second such agreement between the CEB and ICO, following the approval of a € 300 million credit line for MSMEs in November 2013.
Set up in 1956, the CEB (Council of Europe Development Bank) has 41 member states. Twenty-two Central, Eastern and South Eastern European countries, forming the Bank's target countries, are listed among the member states. As a major instrument of the policy of solidarity in Europe, the Bank finances social projects by making available resources raised in conditions reflecting the quality of its rating (Aa1 with Moody's, outlook stable, AA+ with Standard & Poor's, outlook stable and AA+ with Fitch Ratings, outlook stable). It thus grants loans to its member states, and to financial institutions and local authorities in its member states for the financing of projects in the social sector, in accordance with its Articles of Agreement.