This operation will allow the bank, led by Mark Burke, to finance small and medium-sized investment projects that will benefit less developed areas in Portugal.
The European Investment Bank (EIB) and Novobanco have signed a contract to grant new loans worth 300 million euros to Portuguese companies, in a process that will allow the financing of small and medium-sized investment projects that will benefit the less developed regions of Portugal.
“The contract signed today consists of a guarantee of 150 million euros, provided by the European Investment Bank to Novobanko,” the bank noted in a statement issued on Thursday.
According to the financial institution, “the guarantee strengthens Novobanco’s ability to finance and take risks, through a risk sharing of 50% in relation to new loans to medium-capitalization Portuguese companies and public sector entities, for a total of 300 million euros, in particular benefiting consolidation areas.”
“Supporting investments for medium-sized enterprises and the public sector is crucial given the multiple operational and financial challenges they are exposed to in the current context,” said Berthe Brun-Leon, Head of the Financial Institutions Department at the European Investment Bank. In the statement.
On the other hand, Andris Baltar, Director of Novobanko, says that this “partnership reinforces Novobanko’s commitment to promoting sustainable growth and competitiveness of companies that are the main drivers of our economy.”
The goal of this agreement, says the financial institution, is “to encourage and accelerate investments from the private sector, as well as the public sector, and to facilitate access to financing by medium-sized companies, which represent the backbone, along with SMEs, in terms of growth.” And providing job opportunities for the Portuguese economy, by mobilizing new investments worth up to 420 million euros.”
Thus, companies will be able to benefit from lower interest rates, increased financing volume, additional risk sharing with Novobanko or the need to provide smaller guarantees, notes the bank, which expects this guarantee to be mobilized quickly, in response to a crisis in a context characterized by economic uncertainty.
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