CEB supports Spanish MSMEs through a € 300 million loan to Instituto de Crédito Oficial (ICO)

4 April 2016

ICO CEB signatureMADRID - The Governor of the Council of Europe Development Bank (CEB), Rolf Wenzel, and the Chairwoman of Instituto de Crédito Oficial (ICO), Emma Navarro, today signed a Framework Loan Agreement for € 300 million to support micro, small and medium-sized enterprises (MSMEs) in Spain.

The CEB loan, which will be augmented by the ICO at least with the same amount, will provide cost-effective funding for the financing of long-term, productive investments of MSMEs.  

Channelled through accredited financial intermediaries, CEB funds will finance the purchase by MSMEs of fixed assets, such as machinery, equipment, vehicles, and office and manufacturing premises. The aim is to strengthen the competitiveness of small businesses and support job creation and preservation in Spain.

As Spain’s public development financial institution, ICO plays a key role in facilitating access to medium- and long-term financing for MSMEs which are key drivers for creating and preserving employment in Spain. 

The agreement signed today is the latest of three loan agreements from the CEB to the ICO, totalling close to € 900 million. The two previous agreements were approved in November 2013 and November 2014.

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.

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