Microfinance Focus, February 1, 2012: The European Investment Fund has signed a EUR 8 million loan agreement with ICREF (The Institute of Credit and Finance of the Region of Murcia) aimed at supporting micro-enterprises and the self-employed in Spain.

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.

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 microbusinesses for investments and working capital.

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.

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.