EIF, CaixaBank and MicroBank to support Spanish SMEs with €500 million under the EGF

• EIF guarantee of up to €350 million to CaixaBank and MicroBank to leverage up to €500 million in support for SMEs impacted by the COVID-19 crisis in Spain.
• 18,000 small Spanish businesses to benefit from this agreement.
• The agreement is backed by the Pan-European Guarantee Fund (EGF), part of the €540 billion EU rescue package approved in the wake of the COVID-19 pandemic.

The European Investment Fund (EIF), part of the European Investment Bank Group, joins forces with CaixaBank and MicroBank to support Spanish small and medium-sized companies (SMEs) hit by the economic crisis generated by COVID-19.

The EIF will provide a €350 million guarantee to CaixaBank and MicroBank, enabling the Spanish banks to originate a portfolio of €500 million of financing for Spanish SMEs.

Thanks to the EIF guarantee under the EGF, CaixaBank  and MicroBank will offer more favourable financing to SMEs and small mid-caps active in sectors particularly exposed to the COVID-19 pandemic, backing their recovery from liquidity shortages and safeguarding jobs in the country. The EIF will take up to 70% of the risk on these new loans granted to SMEs by the Spanish bank.

The agreement is backed by the European Guarantee Fund (EGF), part of the €540 billion EU rescue package approved to respond to the economic impact produced by the pandemic. It is estimated that over 18,000 Spanish businesses will benefit for this agreement.

 “Once again, the European Guarantee Fund shows the EIF commitment to broadening our reach and support for SMEs across Spain. Thanks to the fruitful relationships with CaixaBank and MicroBank, with whom we have been working closely for the past 14 years, we will activate up to €500 million of financing in support to the Spanish economy, promoting growth, innovation and employment in Spain,” said Alain Godard, Chief Executive of the EIF.

SMEs are the engine of the Spanish economy and sporting their economic recovery after the pandemic is a key priority for the EIB Group. This agreement with CaixaBank and MicroBank, under the European Guarantee Fund, will back the liquidity and investment needs of over 18,000 businesses,” stated EIB Vice-President Ricardo Mourinho Félix.

“As the leading financial institution in Spain, CaixaBank is committed to support sustainable economic growth in the country. This agreement is an excellent opportunity to join forces, the EIF, CaixaBank and MicroBank, towards the common objective of helping the Spanish SMEs to recover from the negative impact of the COVID19 pandemic and at the same time to carry on their investment plans,” stated Gonzalo Gortázar, CEO of CaixaBank.

EIF