The first part of this new line for companies and the self-employed guarantees up to 80% of loans up to 400,000 euros with a financing term of 10 years
The self-employed and companies whose accounts have been most affected by the effects of the war in Ukraine will be able to apply for loans guaranteed by the Office Credit Institute (ICO) and face their lack of liquidity due to the rise in the energy costs or raw materials. On Tuesday, the Council of Ministers gave the green light for a first tranche of EUR 5,000 million of a new set of guarantees, as announced by government spokesman Isabel Rodríguez.
The new set of guarantees, already used to offset the effects of the pandemic, is endowed with a maximum amount of 10,000 million, although only the first 5,000 have been approved for the time being. They state from the Ministry of Economic Affairs that for loans up to 400,000 euros, the guarantee that covers the guarantee is up to 80% of the amount, with a financing term of a maximum of 10 years. With loans of more than 400,000 euros, 80% financing is guaranteed for the self-employed and SMEs and 70% for other companies, with a financing term of up to 8 years.
All applicants are entitled to an initial grace period of 12 months, Rodríguez stated in the press conference after the Council of Ministers, and financial entities must “apply best banking practices and practices to the benefit of their customers” and not impose conditions on the approval of the loans to enter into another service or product, they explain from Economy. In addition, they must keep their customers’ money lines open until December 31, 2022.
The series of ICO guarantees launched during the pandemic financed nearly 750,000 companies, mainly SMEs and the self-employed, and mobilized 140,000 million euros to mitigate the impact of the crisis in the most affected sectors, such as transport, consumption, trade and the textile sector. Where more companies have asked for these guarantees is in Madrid, Andalusia and Catalonia.
The guarantees will be used to guarantee new financing operations granted by banks and can be requested until December 1, 2022 by self-employed persons and companies that are not in default or in bankruptcy proceedings at the date of signature of the operation, nor subject to sanctions by the European Union, nor do they, at the time the guarantee is requested, have any process of guarantee execution administered by the ICO.
Source: La Verdad
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