News from 13-07-2013

KfW and ICO sign global loan agreement for Spanish SME sector

At its meeting on 4th July 2013, the KfW Board of Directors approved a global loan negotiated between KfW and the Spanish development bank ICO. The loan will provide financing for the Spanish SME sector.

The contract was signed immediately following the board meeting by the CEOs of the two development banks, Mr Román Escolano of ICO and Dr Ulrich Schröder of KfW.

The signing was preceded by a press conference in which the German Federal Finance Minister Dr Wolfgang Schäuble and the Federal Economics Minister Dr Philipp Rösler, together with their Spanish counterparts, Economics Minister Luis de Guindos and Industry Minister José Manuel Soria, presented the contract agreed between Germany and Spain within its political context.

The KfW global loan to ICO, which totals EUR 800 million, will strengthen the Spanish development bank’s refinancing base. ICO will pass the loan funds on to Spanish SMEs through their principal banks as low-interest loans, and thereby significantly improve their access to credit.

The global loan is backed by a state guarantee from the Federal Republic of Germany in favour of KfW.

Source: KfW Bankengruppe