3 Jul 2020
EUR 60 million
Financial institutions and SMEs
|Date of agreement:||22 Oct 2015|
|Customer:||Byggðastofnun (Icelandic Regional Development Institute)|
|Amount in EUR:||EUR 12 million|
|NACE sector / loan type:||Loan programme|
|Business area:||Financial institutions and SMEs|
The loan programme has been provided for onlending to small and medium-sized enterprises in rural areas of Iceland. The financing can be used for R&D, tangible capital such as machinery and equipment, ICT, investments in tourism infrastructure, small industry, fishing vessels and farming.
Byggdastofnun, a state development agency, was founded in 1985. Its purpose is to foster regional development in Iceland by implementing government policy by introducing regional strategies and supporting long-term projects. Currently, Byggdastofnun has 350 customers in tourism (30% of customers), the fishing industry (22%), general industry (18%) and agriculture (11%). Since 1988, NIB has agreed 13 loan programmes with Byggdastofnun totalling approximately EUR 135 million for financing SMEs, municipal projects and regional development.
Eligible projects should fulfil NIB’s criteria for SMEs and the sustainability requirements defined in the Bank’s Sustainability Policy and Guidelines. Given that SMEs are responsible for a considerable share of aggregate output and employment in the membership area, improved access to financing can increase competitive pressure and efficiency in the market.
Projects to be financed through a financial intermediary must fulfil the sustainability requirements defined in NIB’s Sustainability Policy and Guidelines.