The scheme will offer guarantees to financial institutions on loans granted to eligible SME´s. In the case of default, the pooled SME Initiative will cover some of the losses incurred. The risk will be spread across European Structural and Investment Funds, the EU budget and the EIB Group. The initiative is part of a Commission strategy to raise €315Bn worth of investment in the euro zone over the next three years.
Vice President of the EC, Jyrki Katainen, stated that
“SMEs from Madrid to Barcelona to Bilbao will have easier access to cheaper loans to support them as they invest and grow. This is great news for the Spanish economy, great news for the European economy and great news for job creation.”
SME´s represent 74% of private employment in Spain and account for 85% of job creation.