ANNOUNCEMENT 12 Jul 2019

In July 2019, the European Investment Bank (EIB) and the Instituto de Crédito Oficial (ICO) signed a credit line agreement to support Spanish small and medium-sized enterprises' (SMEs) and mid-cap companies' exporting activities. 

NUMBER OF INTERVENTIONS

2

  • 2 harmful
  • 0 neutral
  • 0 liberalising

SOURCE

The European Investment Bank, Financed Projects, ICO INTERNATIONALISATION LOAN FOR SMES & MIDCAPS: https://www.eib.org/en/projects/loans/all/20170219
The European Investment Bank, Project summary, ICO INTERNATIONALISATION LOAN FOR SMES & MIDCAPS: https://www.eib.org/en/projects/pipelines/all/20170219
The European Investment Bank, press release of 17 July 2019, Spain: EIB and ICO promote exports of Spanish SMEs with EUR 600 million credit line: https://www.eib.org/en/press/all/2019-184-eib-and-ico-promote-exports-of-spanish-smes-with-eur-600-million-credit-line
Instituto de Crédito Oficial, press release of 17 July 2019, BEI e ICO promueven las exportaciones de las pymes españolas con una línea de crédito de 600 millones de euros: https://www.ico.es/web/ico/notas-de-prensa/-/blogs/bei-e-ico-promueven-las-exportaciones-de-las-pymes-espanolas-con-una-linea-de-credito-de-600-millones-de-euros?_33_redirect=https%3A%2F%2Fwww.ico.es%2Fweb%2Fico%2Fnotas-de-prensa%3Fp_p_id%3D33%26p_p_lifecycle%3D0%26p_p_state%3Dnormal%26p_p_mode%3Dview%26p_p_col_id%3Dcolumn-2%26p_p_col_pos%3D1%26p_p_col_count%3D2
Instituto de Crédito Oficial: https://www.ico.es/en/web/ico_en/mission-and-functions

Inception date: 12 Jul 2019 | Removal date: open ended

Export subsidy

On 12 July 2019, the European Investment Bank (EIB) and the Instituto de Crédito Oficial (ICO) signed a credit line agreement. Under the agreement, the EIB will contribute with EUR 300 million (approx. USD 338.6 million) in financing to support export activities carried out by Spanish SMEs and mid-caps. Additionally, the ICO will contribute with EUR 300 million, see related intervention.  

According to the EIB: "The aim of this agreement is to promote the growth and competitiveness of small and medium-sized export-oriented Spanish firms in order to foster innovation – closely linked to international business – and create jobs." Additionally, the EIB Vice-President Emma Navarro stated in a press release: "access to external markets is key to enabling small Spanish businesses to grow and create jobs. This agreement will provide both the short and long-term financing required for them to internationalise their activities and represents a further step forward in the close partnership between the EIB and ICO in jointly boosting the growth of our companies."

Notably, this is the second credit line agreement between the EIB and ICO to promote SMEs' and mid-caps' export activities. 

Instituto de Crédito Oficial is a state-owned bank whose function is to promote "economic activities contributing to growth, the development of the country and improving the distribution of the national wealth." Among other activities, the bank manages Spain's official funding instrument to promote Spanish exports and development aid. 

A state act in the GTA database is assessed solely in terms of the extent to which its implementation affects foreign commercial interests. On this metric, the investment support granted here is discriminatory. 

AFFECTED SECTORS

 
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AFFECTED PRODUCTS

 
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Inception date: 12 Jul 2019 | Removal date: open ended

Export subsidy

On 12 July 2019, the European Investment Bank (EIB) and the Instituto de Crédito Oficial (ICO) signed a credit line agreement. Under the agreement, the ICO will contribute with EUR 300 million (approx. USD 338.6 million) in financing to support export activities carried out by Spanish SMEs and mid-caps. The EIB will contribute with an additional EUR 300 million, see related intervention.  

According to the EIB: "The aim of this agreement is to promote the growth and competitiveness of small and medium-sized export-oriented Spanish firms in order to foster innovation – closely linked to international business – and create jobs." Additionally, Chairman of the ICO Jose Carlos García de Quevedo stated in a press release: "this new operation between our two institutions will strengthen ICO’s role as the go-to organisation for financing Spanish businesses. Today’s agreement with the EIB will enable us to provide liquidity to Spanish firms so that they can grow, export and be more competitive, thus helping to create jobs and generate economic growth in Spain."

Notably, this is the second credit line agreement between the EIB and ICO to promote SMEs' and mid-caps' export activities. 

Instituto de Crédito Oficial is a state-owned bank whose function is to promote "economic activities contributing to growth, the development of the country and improving the distribution of the national wealth." Among other activities, the bank manages Spain's official funding instrument to promote Spanish exports and development aid. 

A state act in the GTA database is assessed solely in terms of the extent to which its implementation affects foreign commercial interests. On this metric, the investment support granted here is discriminatory. 

 
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