The President of the Government, Pedro Sánchez, announced this Saturday that he will unlock a third line of public guarantees through the ICO of 20,000 million euros, which will now add 60,000 of the 100,000 million committed, to guarantee liquidity to SMEs and the self-employed.
The Prime Minister, Pedro Sánchez, announced this Saturday that this new section will be approved next Tuesday in the Council of Ministers.
In this third line of guarantees, the Executive has once again decided to reserve practically all the guarantees for SMEs and the self-employed, considered the group that is suffering the most from the economic crisis caused by the coronavirus.
Once the section is enabled, more than 60% of the 100,000 million euros of the business financing aid program will have been consumed.
This line is managed by the Official Credit Institute (ICO), in collaboration with financial institutions, which assume the cost of the guarantee, which is in a range of between 20 and 120 basis points.
The only requirement to access this guarantee is that the applicants were not in default as of December 31, 2019 and in bankruptcy procedure as of March 17, 2020.
Sánchez has recognized that there are complaints, mainly from SMEs and the self-employed, about the processing of guarantees by certain entities. “We evaluate it directly and we are trying to improve their management,” he said.
Likewise, the Government will enable a line of 4,000 million euros to cover the credits channeled by the financing system based on promissory notes of the alternative fixed-income market (MARF).
These 4,000 million euros are part of the extension of the lines of ICO guarantees to the MARF announced last week, with which it is intended to promote the maintenance of financing that occurs in the capital markets that Spanish companies usually resort to and who was practically suspended due to the health emergency situation.