Investment & Fund Management

The European Investment Fund (EIF) and Banco Espírito Santo (BES) entered into a significant partnership through a EUR 8.75 million loan agreement aimed at bolstering micro-enterprises and self-employed entrepreneurs in Portugal. This initiative was part of the European Progress Microfinance Facility, which is designed to enhance access to finance for micro-entrepreneurs, particularly those facing challenges in obtaining traditional credit.

The specific issue addressed by this collaboration was the tightening credit conditions that micro-entrepreneurs in Portugal were experiencing, which hindered their ability to secure necessary funding. The tailored solution provided by this agreement allowed Banco Espírito Santo to offer up to EUR 8.75 million in micro-loans, specifically targeting around 600 micro-enterprises. This funding was particularly focused on self-employed individuals, thereby promoting employment and economic growth within the region.

As a result of this initiative, Banco Espírito Santo was able to expand its lending activities to small and micro-enterprises, reinforcing its position as a leader in supporting micro-entrepreneurs in Portugal. The agreement not only facilitated easier access to finance but also contributed to the creation of jobs, with BES having supported 668 projects amounting to a total of EUR 11.7 million, resulting in the creation of 1,159 jobs by March 2013. This partnership exemplifies how targeted financial solutions can effectively address the unique challenges faced by micro-entrepreneurs, fostering economic development and social inclusion.