Spain: Support and boost to the Andalusian agricultural sector

Spain: Support and boost to the Andalusian agricultural sector

The EI and the Junta de Andalucía sign an agreement to manage a fund that will provide up to 250 million euros of funding

On 14 December 2020, The European Investment Bank (EMI) and the Junta de Andalucía once again joined forces, this time to support and promote the development of the region’s agricultural sector, a sector that, in addition to historically facing a funding gap of more than EUR 1 billion per year, has been affected, among other factors, by the impact of Brexit and the COVID-19 pandemic. The EU bank will manage a guarantee fund of up to EUR 50 million, with the aim of providing financing of up to EUR 250 million. The final beneficiaries shall be farmers, agricultural cooperatives and producer organisations as well as companies active in the processing and marketing of agricultural products. Thus, the objectives of the fund are both support for young farmers, new businesses and small farms that depend on third-party financing, innovative agricultural projects and transformative activity. The financial instrument will be co-financed by the EEDRD funds(European Agricultural Fund for Rural Development for the period 2014-2020) and by the Board.

The agreement, signed by EI Vice-President Ricardo Mourinho Félix and the European Finance and Finance Director of the Junta de Andalucía, Juan Bravo Baena, will enable the EU bank to manage this guarantee fund to promote investments that support employment, innovation, economic and environmental sustainability, competitiveness and generational renewal of the sector. Financial Intermediaries, which will be selected through a forthcoming public call for expressions of interest, will be required to transfer the financial advantage of the guarantee to the final recipients.

EIB Vice-President Ricardo Mourinho Félix,responsible for the Bank’s activity in Spain,has said:”This agreement reaffirms the close relationship between the EIB and Andalusia, a region that the EU bank has supported for more than 30 years promoting a sustainable economy. The Andalusian agricultural sector is key both to economic growth and job creation in cohesion regions, as well as to address the growing demand for healthier foods and address challenges such as soil degradation, pollution and climate change. That is why we are pleased to support the implementation of this fund that will help Andalusian farmers better address the difficulties facing the sector in accessing credit, as well as the impact of Brexit and Covid-19.”

For his part, the Councillor for Finance and European Finance, Juan Bravo Baena, has highlighted the leading role of the European Funds in the development of the autonomous community by allowing “togenerate social cohesion andconvergence” that have become”factors of global competitiveness for the Andalusian economy”. It also indicated that “Andalusia is once again a pioneer inthe management of these resources, following the indications and recommendations of the European Commission and betting on new forms of support, in this case through a financial instrument supported by EEDRD funds.”

Overview:

Andalusia and the EED Group enjoy a long-term relationship of more than 30 years during which they have worked closely together. In addition to providing its international knowledge and experience in the management of financial resources through the management of two financial instruments aimed at promoting sustainable urban development in the region(JESSICA Andalucía and Fund fund SUD Urban Development Andalusia),the EI Group has supported the autonomous community with 15 billion euros in loans through more than 100 projects, of which approximately half in the last decade.

Source: Apoyo e impulso al sector agrícola andaluz: El BEI y la Junta de Andalucía firman un acuerdo para gestionar un fondo que facilitará hasta 250 millones de euros de financiación (eib.org)

Photo Credit : https://pixabay.com/photos/andalucia-sevilla-plaza-spanish-5313594/

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