The European Investment Bank (EIB) and Bankinter on 20th December signed an agreement to support SMEs and mid-caps (up to 3 000 employees) in Spain and Portugal.
For this purpose, the bank has provided a €200m loan to Bankinter, which will add a further €200m to this credit line.
As a result, the total funding made available to SMEs and mid-caps to fund their working capital and investment projects will be €400m.
Confirming the loan agreement, the EIB said in a statement that the beneficiary companies will be able to make their investments in Spain and Portugal.
How does it help SMEs in Span and Portugal?
The EIB said that the financing will enable companies to benefit from more favourable maturity and Interest Rate conditions to develop their projects.
The objective of the agreement is to give companies support in order to drive economic growth and job creation, the bank said.
This loan is the 6th of its type underwritten by the two entities, and is focused particularly on funding projects by smaller-sized companies.
With this new agreement, the EIB and Bankinter are joining forces to promote economic development for small and medium-sized enterprises.
To do so, this EIB-Bankinter credit line will offer them favourable conditions including longer payment terms, flexible disbursements and lower interest rates, the bank said.