The EIF and ICREF (The Institute of Credit and Finance of the Region of Murcia) have signed a EUR 8 million loan agreement aimed at supporting micro-enterprises and the self-employed in Spain.

ICREF, has committed to almost tripling the loan amount, which means that a total loan amount of up to EUR 20m will be made available to Spanish micro-businesses for investments and working capital.

This transaction was signed under the European Progress Microfinance Facility (Progress Microfinance), funded by the European Commission and the European Investment Bank and managed by the European Investment Fund, being the 14^th signature under this facility.

Commenting on the transaction, EIF Director, Marc Schublin said: “We are pleased to be signing our first loan agreement under Progress Microfinance in Spain with ICREF”.

“I am convinced that this long-term funding paired with targeted mentoring and training programmes will help to benefit micro-enterprises and help them grow at this crucial time “.

Regional Minister of Economy and Finance of the Region of Murcia, Salvador Marín said: “ This agreement is another example of the work we are doing in the region, looking for innovative solutions and establishing collaborative links to support our productive sector. This is reflected in the fact that the Region of Murcia is the first in Spain to utilise Progress Microfinance in partnership with the European Investment Fund”.

This agreement will allow ICREF to complement its current SME lending activity and to scale up its micro-lending business. It is expected that this transaction will help to create and expand a more developed microfinance market in Murcia.

About the European Progress Microfinance Facility

The European Progress Microfinance Facility (Progress Microfinance) provides guarantees and funded instruments to microfinance intermediaries. The initiative is established with EUR 203 million of funding from the European Commission and the European Investment Bank. EIF acts as Management Company on behalf of the EU Microfinance Platform FCP-FIS - European Progress Microfinance Fund, the main vehicle through which Progress Microfinance is implemented. Progress Microfinance aims to increase access to finance for micro-entrepreneurs, including the self-employed. It has a particular focus on, but is not restricted to, groups with limited access to the conventional credit market. Examples include female entrepreneurs, young entrepreneurs, entrepreneurs belonging to a minority group, entrepreneurs with a disability, sole traders etc. Loans less than EUR 25,000 are made available through selected intermediaries participating in the facility. Progress Microfinance does not provide direct financing to micro-entrepreneurs or individuals.

About the EIF

EIF's central mission is to support Europe's small and medium-sized businesses (SMEs) by helping them to access finance. EIF designs and develops venture capital and guarantees instruments which specifically target this market segment. In this role, EIF fosters EU objectives in support of innovation, research and development, entrepreneurship, growth, and employment. The EIF total net commitments to private equity funds amounted to over EUR 5.4bn at end 2010. With investments in over 300 funds, the EIF is a leading player in European venture due to the scale and the scope of its investments, especially in high-tech and early-stage segments. The EIF commitment in guarantees totalled over EUR 14.7bn in close to 160 operations at end 2010, positioning it as a major European SME guarantees actor and a leading micro-finance guarantor.

About ICREF

The Institute of Credit and Finance of the Region of Murcia (ICREF), entity under the Regional Ministry of Economy and Finance, was created in 2007 and became operational in 2009, when its statutes were approved through decree 133/2009. It is a public institution, fully owned by the Regional Government of Murcia.

It was created with the purpose of raising funding in the national and international capital markets on behalf of the Regional Government of Murcia (so far, ICREF has issued, on behalf of the Regional Government of Murcia, over EUR 890m of debt); and developing the regional economic and business activities, including the development of SMEs and microenterprises.

Press Contacts

EIF: David Yormesor, d.yormesor@eif.org

ICREF: Jaime Escribano, jaime.escribano@carm.es or visit ICREF’s website www.icrefrm.es

HIGHLIGHTS

European Progress Microfinance Facility