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COFIDES DEVELOPS AN ACTION PLAN TO ENHANCE SMEs INVESTMENT PROJECTS

COFIDES is developing an action plan in order to help SMEs develop their investment projects abroad. SMEs have always played a major role in COFIDES activity. In the 19 years that it has been in business, more than 80% of investment projects approved by COFIDES have been small and medium-sized projects.

In the context of the present economic downturn, not only does COFIDES look forward to enhancing financial support to private projects developed by SMEs, but also to preventing SMEs from cancelling or postponing productive or commercial viable investment projects.

The company’s Operating Criteria have been reviewed by the Board of Directors with the intention of changing them if necessary to be of benefit to SMEs. Thus, as fund manager of FONPYME (Fund for SME Foreign Investment Operations), COFIDES provides a more flexible financial support for small and medium-sized promoting companies:

• 49% is the new limit for minority, temporary holdings in the share capital of small and medium-sized companies located outside Spain.

• Joint venture loans and other medium- and long-term syndicated instruments are limited to 70% of the total project investment.

• More financial flexibility on current assets.

• More flexibility on investment periods. Investments can be computed if they were undertaken in a 2-year period before analysis.

In 2009, priority was given to SMEs in the commercial activity developed by COFIDES. As a means of supporting the Spanish SME expansion abroad, the Company strengths cooperation with ICEX, the Spanish Institute for Foreign Trade. Furthermore, the Company is planning to introduce a new facility in 2009, FINTIC, geared to furthering the investment projects developed by SMEs in the Information and Communication Technologies industry. Moreover, a seminar on Private Sector Financing addressed to SMEs is due to be held in November 2009.