ANNOUNCEMENT 10 Dec 2019

On 10 December 2019, the Spanish Official Credit Institute (ICO in Spanish) signed a third financing agreement with the Development Bank of Latin America - CAF, oriented to finance Spanish companies and investment projects in Latin America.

NUMBER OF INTERVENTIONS

2

  • 2 harmful
  • 0 neutral
  • 0 liberalising

SOURCE

Instituto de Crédito Oficial. Official Credit Institute. Notas de Prensa. 10/12/2019. El ICO concederá un nuevo préstamo de 200 millones de dólares a CAF para impulsar el desarrollo de proyectos sostenibles en América Latina. Available at: https://www.ico.es/web/ico/notas-de-prensa/-/blogs/el-ico-concedera-un-nuevo-prestamo-de-200-millones-de-dolares-a-caf-para-impulsar-el-desarrollo-de-proyectos-sostenibles-en-america-latina

CAF, Development Bank of Latin America. About us. Available at: https://www.caf.com/en/about-caf/

Inception date: 10 Dec 2019 | Removal date: open ended

Financial assistance in foreign market

On 10 December 2019, the Spanish Official Credit Institute (ICO in Spanish) signed a third agreement with the Development Bank of Latin America – CAF, for the amount of USD 200 million in order to finance Spanish companies and investment projects in Latin America. 

According to ICO, the funds are oriented to "finance and promote the activity and projects of companies with Spanish interests in Latin America, with special attention to sustainable or green projects".

This is the third agreement signed by ICO and CAF within the framework of the ICO's "Canal Internacional" (see related state acts). The first agreement was signed in July 2016 for the amount of USD 300 million. The second agreement was signed in September 2018 for the amount of USD 130 million.

The final beneficiaries are businesses located in Latin America that comply with both or either of two conditions. The first condition is to have a minimum of 30% of Spanish capital. In this sense, the signed agreement will allow executing the mandate to support the internationalization of the Spanish company.

According to its website, CAF is a development bank created in 1970, owned by 19 countries - 17 of Latin America and the Caribbean, Spain and Portugal -, as well as 13 private banks in the region. It promotes a sustainable development model through credit operations, non-reimbursable resources, and support in the technical and financial structuring of projects in the public and private sectors of Latin America.

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: 10 Dec 2019 | Removal date: open ended

Trade finance

On 10 December 2019, the Spanish Official Credit Institute (ICO in Spanish) signed a third agreement with the Development Bank of Latin America – CAF, for the amount of USD 200 million in order to finance Spanish companies and investment projects in Latin America. 

According to ICO, the funds are oriented to "finance and promote the activity and projects of companies with Spanish interests in Latin America, with special attention to sustainable or green projects".

This is the third agreement signed by ICO and CAF within the framework of the ICO's "Canal Internacional" (see related state acts). The first agreement was signed in July 2016 for the amount of USD 300 million. The second agreement was signed in September 2018 for the amount of USD 130 million.

The final beneficiaries are businesses located in Latin America that comply with both or either of two conditions. The second condition is that the financed project has at least 30% of goods or services provided by a Spanish company. In this sense, the signed agreement will allow executing the mandate to support the internationalization of the Spanish company.

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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