The European Investment Bank (EIB) and ELKARGI, a non-profit financial institution that aims to improve the financial conditions of businesses, have signed an agreement to support businesses, especially those affected by the COVID-19 crisis. The EIB will provide ELKARGI with a counter-guarantee of up to € 75 million so that it can channel more than € 110 million of financing to businesses. The EIB’s counter-guarantee is supported by the European Guarantee Fund (EGF), as part of the European Union’s € 540 billion envelopes to respond to the economic impact of COVID-19.
The operation consists of a risk-sharing counter-guarantee mechanism which enables the EIB and ELKARGI to increase their support for financing that promotes economic growth, competitiveness and employment. Thanks to the European Guarantee Fund, ELKARGI will be able to make financing available, thanks to its guarantee, to medium-sized companies other than SMEs with less than 3,000 employees with investment financing or working capital needs. The final beneficiary companies will be able to access financing at advantageous conditions.
The aim of the European Guarantee Fund is to respond to the economic impact of COVID-19, ensuring that eligible businesses can obtain sufficient liquidity and access long-term financing to overcome the economic challenges caused by the pandemic.
“The agreement with ELKARGI demonstrates the strong commitment of the EIB to support small and medium-sized Spanish companies affected by the pandemic to meet their financing needs. As the bank of the EU, we are here to help companies to continue their development and their investments in the long term, helping to strengthen the Spanish business landscape ”, said Ricardo Mourinho Félix, vice-president of the BEI.
ELKARGI CEO Zenón Vázquez also underlined “the historical importance of our agreement with the EIB for ELKARGI. Beyond the recognition it gives us, it allows us to open a new way of financing for large companies, which we believe should also support. This agreement allows us to increase funding resources to 3 million euros, by channeling this funding to medium-sized companies with up to 3,000 employees. “