Brussels, 22/05/2012 (Agence Europe) - The European Investment Bank (EIB) granted a €200 million loan to Banco Popular on 14 May. A further loan for the same amount was granted that same day to Banesto. The EIB funding will be used to finance the investment projects of small and medium-sized businesses (SMEs) in the industry and service sectors.
The loan granted to Banco Popular carries favourable maturity and interest rate terms, which Banco Popular will pass on to its borrowers. Banco Popular will match the loan with a further €200 million for financing the projects targeted. The EIB credit line will help to increase the productivity of recipients, fostering the rational use of energy and diversification of energy sources, and promoting private enterprise in the health and education sectors. Around 50% of the loan will go to projects located in convergence regions.
The second loan, the first granted by the EIB to Banesto under the Bank's new SME support strategy, will facilitate access to finance in the current economic crisis. It, too, will carry favourable maturity and interest rate terms, which Banesto will pass on to its borrowers. As with the loan to the Banco Popular, Banesto will match the EIB loan with a further €200 million for financing the same kinds of projects, bringing the total amount made available to SMEs to €400 million. (OL/transl.rt)