Banco Sabadell has signed a new agreement with the European Investment Bank (EIB) under the European Guarantee Fund (EGF), which forms part of the EU’s 540-billion-euro package of measures to address the economic impact of Covid-19. The EIB will provide Banco Sabadell with a guarantee of up to 300 million euros to finance projects carried out by companies of different sizes in Spain, enabling the Bank to channel around 700 million euros into the real economy over the next six years.
The agreement between the EIB and Banco Sabadell aims to promote investment by medium and large Spanish enterprises in key sectors of the economy, such as innovation and the environment, as well as to support SMEs affected by the crisis triggered by the pandemic. By assuming up to 75% of the risk associated with the loans granted by Banco Sabadell to mid-caps and large enterprises, the EIB will promote the provision of new finance and indirectly support the entire ecosystem of small suppliers of the financed companies.
Carlos Ventura, Business Banking & Network Director at Banco Sabadell, stressed that “the European Investment Bank has historically been a key institution in supporting businesses in Spain. Banco Sabadell is always ready to collaborate with the EIB to offer the best financing terms and conditions for our customers’ business projects. This facility is particularly important and comes at an opportune time, given its scale and the recovery period and future investment plans that our business customers are navigating”.
The Vice President of the EIB, Ricardo Mourinho Félix, stated that “we are very proud to support small and large Spanish enterprises in overcoming the major economic challenges presented by Covid-19. During times like these, extending payment periods is key to optimising the working capital of companies that are struggling to pay suppliers and thereby keep their business afloat. With this new operation under the Pan-European Guarantee Fund, we reaffirm our firm commitment to protect the productive sector and employment, driving a sustainable recovery of the economy in Spain and the rest of Europe”.
