Banco Santander launches a plan of up to 30,000 million euros in loans to SMEs

  • According to the CEO of Banco Santander, in 2014 they expect to increase the granting of credit to SMEs in Spain by 24%.
  • Esteem that with this new project submitted up to 20,000 SMEs will access the program this year in Spain, up to a total of 60,000 SMEs until 2016.
  • They will close the year with an active balance in loans to SMEs of 29,100 million.

Oificina del Santander 

Banco Santander expects to increase the granting of credit to SMEs in Spain by 24% this year until reaching a new production of 30,700 million euros. The bank also aims to increase its customer base by 22% compared to the 280,000 active customers it currently has in this segment, without including self-employed workers and businesses.

This was advanced by the CEO of Banco Santander, Javier Marín, at a press conference with the CEO and head of Santander Spain, Enrique García Candelas.

Specifically, bankers have anticipated that Santander will close this year with an active loan in SMEs of 29,100 million, which will mean an increase of 11% compared to December 2013 and the first growth since 2009. Marín has underlined the ” ambition “to gain share in this segment in a year in which GDP will grow by 1%.

Default in loans to SMEs

As for the forecast of the loan that Spanish banks will allocate to SMEs during this year, Santander has estimated that the balance will rise between 3% and 5 %, within a context in which the credit will also flow again in general- Citrus North. García Candelas has calculated that the default rate on loans to SMEs increased from 16.4% to 16.9% at the end of December of this year.

Credit spreads will be 3.5% depending on the link and the amount The entity has presented the launch of Santander Advance, a project that focuses on SMEs global business strategy. “Santander wants to be a partner to grow”, said the ‘number two’ of the entity, who has estimated that 20,000 SMEs will access the program in Spain this year, up to a total of 60,000 companies of these characteristics until 2016.

Marín has guaranteed that the entity has not left “any solvent project” without financing in the last five years. Credit spreads will be 3.5% depending on the link and the amount.

Benefit companies “hit” in the crisis

García Candelas took the opportunity to reaffirm the “clear” change in the trend of the economic cycle and stressed that SMEs begin to benefit from this improvement in the economy after being “especially hit” during the crisis.

The initiative opens in Spain and will be implemented in 2015 in the group’s main markets, where it expects to boost lending to SMEs above 10% this year. Specifically, Marín has advanced that the entity expects to finance with about 55,000 million SMEs from Spain, Brazil, United Kingdom, Mexico, and Chile. The bank expects more than 200,000 companies to access the Santander Advance program in the next three years.

The CEO of Santander has also announced the creation of the Advance Fund, a financial vehicle for medium and long-term projects that will invest in SMEs through subordinated debt. In Spain, the initial endowment will amount to 250 million. The fund will be used for projects with a minimum amount of one million euros and will be extended to other markets.

The entity will make available to the companies the ‘Santander Passport’ so that customers who do business abroad have the same facilities as any subsidiary of the group. The group will promote training, international connection and employment programs to make it easier for SMEs to increase their size.