The subsidiary of the Unicaja Bank Group, Caja España-Duero, and the Reciprocal Guarantee Corporation (SGR) Iberaval have signed an agreement on Thursday, whereby the financial entity will make available to entrepreneurs and small businesses 19 million euros more for the formalization of loans backed by the SGR.
The president of Iberaval, José Rolando Álvarez, and the general director of Commercial Banking of Caja España-Duero, Carlos Ranera, signed on Thursday the agreement between the two entities, which maintain a ‘joint venture risk’ of 109 million euros, distributed in 1,500 operations in force with companies of the Community.
Now, for the years 2014 and 2015, another 19 million euros will be injected to formalize loans that will be mainly directed to new investments, requests for working capital and will also place the “focus” on internationalization.
José Rolando Álvarez has stressed the importance of having a “regional bank involved with the economy” as he sees what happens with Caja España de Inversiones, Salamanca and Soria (Ceiss) and what has added the support of Iberaval so that companies can take forward the credit operations.
Thus, he recalled, Iberaval has already endorsed a total of 6,900 transactions formalized with Caja España-Duero for an approximate value of 500 million euros, of which 1,500 operations with a live risk of 109 million euros remain in force.
Álvarez has insisted that the current economic situation requires society to help “small entrepreneurs” because it believes that if you want to create jobs that “respond to Spaniards who demand a job” you should have “a lot” more into account for SMEs. ”
In this regard, he recalled that the great “frontier” that these companies “can not overcome” for their growth is the term of funding something that in the operations endorsed by Iberaval, such as the agreement signed today, can reach up to 15 years in what refers to investments and 12 years in circulation.
In both cases, with the support of the SGR, operations are allowed up to a total of 600,000 euros and with grace periods of up to two years to “further encourage the amortization of the amounts committed.”
For his part, Carlos Ranera stressed that since the past months of May and June has begun to perceive an increase in the number of credit transactions formalized in the subsidiary of Unicaja Banco, which has linked not only to the “good indications of economic recovery “but also to the commercial presence of the staff of Caja España-Duero in the street after” normalizing “the situation with its parent from March.
Thus, he highlighted that in the months of July, September or October the number of new operations with a sustained growth in each month over the previous one has “skyrocketed”. In any case, has clarified that more money is requested than long-term investment, so he reflected that “confidence still has not much pull”.
Ranera has insisted that Castilla y León is “the market” of Caja España-Duero, an entity that has 511 offices in the Community, so it has reflected that if it does not work “well” in the region they would be “wrong”.
He also stressed that Unicaja’s subsidiary is the entity with the largest share in offices and on the balance sheet and has pointed out that at present, conditions indicate that “either the investment grows or the profitability does not come out”.
Sources from Iberaval added that the sector that most benefits from these financial backing operations are commerce, with four out of ten operations, followed by industry, with 19 percent of services; hospitality, with 15 percent, and tourism with 12 percent. The rest is oriented to areas such as construction, the primary sector or transport.