Government measures in key jurisdictions 5th edition - Flipbook - Page 126
Spain
Ignacio Corbera Dale | ignacio.corbera@garrigues.com | +44 (0)20 7710 9416
Contributor: Garrigues
Loans and
financial
support
Has the
government put
in place any new
bank funding
schemes?
126
•
Government is granting up to Ä100 billion in guarantees for funding provided
by credit institutions. In this respect: net indebtedness limit for the Spanish Official
Credit Institute (ICO) raised by Ä10 billion, to increase ICO facilities providing
funding to companies and the self- employed, and the guarantee will cover 80% of
new financing operations and renewals for self-employed and SMEs (defined as
companies with less than 250 employees, and with an annual turnover that does not
exceed EUR 50 million or with an annual balance sheet that does not exceed EUR 43
million). For all other companies, the guarantee will cover 70% in the event of new loan
operations and 60% for renewals.
•
There is no limit to the amount of guarantee per beneficiary, subject to EUs state aid
rules. The insurance premiums may vary whether the beneficiary is an SME or a nonSME, in accordance with de minimis EU regulations.
•
A new line of ICO guarantees of Ä 40 billion (with the possibility of increasing it up to
Ä100 billion) has been activated by the Royal Decree Law 25/2020 (“RD 25/2020”) with
the purpose of financing companies and self-employed individuals with productive
investments.
•
The Spanish Export Credit Agency (CESCE) has been authorised to provide insurance
cover amounting up to Ä2 billion for the working capital credit facilities needed by SMEs
(excluding micro-companies that are those with less than 10 employees and with an
annual turnover or annual balance sheet that does not exceed Ä2 million) and bigger
non-listed companies.
•
There is no requirement that the use of the funds be linked to the performance of export
contracts and should respond to new financing needs and not to pre-crisis situations.
The percentage of credit risk cover shall not exceed 80%.
•
The RD 25/2020 has increased the endowment granted to the fund for Foreign
Investment (FIEX), managed by COFIDES, from Ä10 to Ä100 million.
•
The sums in the Fund for “Red Cervera” Technical Provisions and R&D&I projects are
allowed to be used to cover any risks that the Centre for Technological and Industrial
Development (CDTI) may incur by providing loans to finance R&D&I projects of small
and medium enterprises, and of mid-cap companies.
•
New Covid-19 fund (Fondo Covid-19) managed by the state-owned industrial holding
company Sociedad Estatal de Participaciones Industriales (SEPI) of Ä10 billion has been
created to provide financial support strategic non-financial companies that have been
particularly affected.
•
The purpose of Fondo Covid-19 is to provide temporary public support to strengthen
business solvency, in particular through the granting of participating loans,
subordinated debt, subscription of shares or other capital instruments, to non-financial
companies experiencing severe temporary difficulties because of the Covid-19
pandemic and which are considered strategic for the national or regional production.
•
Royal Decree Law 19/2020 (“RD 19/2020”) introduces a special legal regime for
moratorium agreements offered by lenders. The regulation requires that these
agreements -in order to benefit from the provisions established in RD 19/2020- are the
result of the lender's adherence to a sectoral framework agreement for deferred
payment promoted by the associations representing financial institutions, which must
be communicated to the Bank of Spain.
•
For further information regarding these moratoriums, please visit here. RD 25/2020
introduces an extraordinary line of financing with the purpose of granting financial
support to private companies and self-employed individuals related to the tourism sector
and which has been affected by economic losses arising from Covid-19. This financing
should be used for digital transformation and innovation projects.
Government measures in key jurisdictions
