The European Investment Bank (EIB) has signed a new agreement with Banco Sabadell under the Pan-European Guarantee Fund (EGF), which is part of the €540 billion package of measures with which the European Union is responding to the economic impact of COVID-19.
The EIB will provide Banco Sabadell with a guarantee of up to €300 million to finance projects implemented by companies of various sizes in Spain, enabling the Spanish bank to channel almost €700 million into the real economy over the next six years.
EIB Vice-Presiden,t Ricardo Mourinho Félix said: “We are very proud to help Spanish mid-caps and large corporates to overcome the major economic challenges caused by COVID-19. At times like these, it is crucial to extend payment periods to optimise the working capital of companies that are struggling to pay their suppliers and therefore stay in business. With this new operation under the Pan-European Guarantee Fund (EGF), we are reaffirming our strong commitment to protecting industry and jobs, fostering a sustainable economic recovery in Spain and across Europe.”
The agreement between the EIB and Banco Sabadell aims to boost the investments of Spanish mid-caps and large corporates in key economic sectors such as innovation and the environment, as well as to support small and medium-sized enterprises (SMEs) affected by the pandemic crisis.
By assuming up to 75% of the risk for loans that Banco Sabadell grants to mid-caps and large corporates, the EIB will encourage the provision of new financing, indirectly supporting the entire ecosystem of small suppliers of the companies receiving such financing.
Banco Sabadell General Manager for Business and Network, Carlos Ventura stressed: “The EIB has long been a key player in supporting business development in Spain. For Banco Sabadell, it has always been very important to work together with the EIB to offer the best financing conditions for our customers’ business projects. This credit line is especially important and timely due to its volume and because it comes at a time of recovery and of investments for the future managed by our business customers.”