The Line of Guarantees of the Ministry of Economic Affairs and Digital Transformation, intended to facilitate the liquidity of the self-employed, SMEs and companies and which guarantees operations granted since last March 18, will be operational from Monday, April 6, once the Official Credit Institute (ICO) and financial entities have signed the corresponding collaboration agreements.
Thus, the deadlines that the Government had given the ICO are met. As advanced 'Bolsamanía'In the agreement, 10 days were established for this body to have "what is necessary for the effective implementation of this line of guarantees."
The Line of Guarantees was approved with a provision of up to 100,000 million euros. The first tranche activated has an amount of 20,000 million euros, of which 50% is reserved to guarantee loans to the self-employed and SMEs.
However, the Executive keeps an ace up its sleeve: may modify the conditions in the 80,000 million remaining if deemed necessary. That is, it will be able to reduce the guaranteed percentage below 80% (in the case of SMEs) of the first 20,000 million.
Also, banks are not being proactive In the granting of new credit with a state guarantee, the government does not want them to be, according to sources in the sector consulted by this means. They are only granting them for the renewal of old loans, something that the European Central Bank (ECB) sees well, which contrasts with the strong demand for liquidity from the companies.
Financial institutions must keep their customers' working capital lines open until September 30. They will also have to transfer to their clients the benefit derived from the public guarantee, in the form of lower interests or longer terms, among other options. Likewise, they may not condition the approval of the loans to the contracting by the client of any other service or product.
To ensure an adequate distribution of guarantees between financial operators (credit institutions, financial credit institutions, payment institutions and electronic money institutions), a separate distribution of the two tranches has been approved.
In each of them, the amount will be distributed among each financial institution based on their market share at the end of 2019, on the one hand, in relation to the credit to self-employed and SMEs and, on the other hand, to large companies, according to the information communicated by the Bank of Spain.
Financial institutions that at the end of 2019 did not have a credit balance registered with the Bank of Spain will also have access to this line. An added fee of 1% will be reserved for them.
Starting April 30, amounts of collateral assigned and not used by the entities, they will be distributed among the rest of the operators that have exhausted their lines, in proportion to the amount of the guarantee that they would have used up to said date.
The guarantees granted by the ICO will cover the principal amount of the loan unpaid by the client, excluding other items, such as ordinary or default interest.
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