Coronavirus - Government measures in key jurisdictions - Flipbook - Page 73
Spain
Ignacio Corbera Dale | ignacio.corbera@garrigues.com | +44 (0)20 7710 9416
Contributor: Garrigues
1
Loans and
financial
support
•
– Net indebtedness limit for the Spanish Official Credit Institute (ICO) raised by 10€
billion, to increase ICO facilities providing funding to companies and the self-employed.
– The guarantee will cover 80% of new financing operations and renewals for selfemployed 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.
Has the
government put
in place any new
bank funding
schemes?
2
Employment
What financial
support is the
government
providing to
businesses and
to individuals
on employment
issues?
Government will grant up to €100 billion in guarantees for funding provided by credit
institutions. In this respect:
•
There is no limit to the amount of guarantee per beneficiary, subject to EUs state aid rules.
•
The Spanish Export Credit Agency (CESCE) has been authorised to provide insurance
cover amounting up to €2 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 €2 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 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.
•
For more information, please visit: Royal Decree-Law 8/2020 of March 17, 2020
launches urgent and extraordinary measures to confront the economic and social
impact of COVID-19, Preserving and increasing liquidity in the time of COVID-19, and
COVID-19: Recommendations for accessing the financing facilities offered under
Royal Decree-Law 8/2020
•
Furlough procedures (“ERTEs”) as a temporary solution. The conditions for processing
ERTEs have eased and can be processed much quicker. ERTEs can be processed in
case of force majeure and economic, technical, organisational and production-related
grounds arising from COVID-19.
•
Exemption from contributions in the case of ERTEs due to force majeure. There is a full
exemption from the employer’s share of social security contributions for companies with
fewer than 50 workers and a 75% exemption for companies with 50 or more workers.
•
Obligation to maintain employment. The extraordinary employment-related measures
are subject to the company’s obligation to maintain employment for a period of 6
months following the date of resumption of the company’s activity.
•
Rights to adapt and reduce working hours. This measure is addressed to workers who
evidence duties of care with respect to their spouse or equivalent and relatives up to
the 2nd degree of consanguinity because of COVID-19.
•
For more information, please visit: Royal Decree-Law 8/2020 of March 17, 2020
launches urgent and extraordinary measures to confront the economic and social
impact of COVID-19, Companies facing the COVID-19 crisis, Key new legislation
introduced in Royal Decree-Law 11/2020, and Workers in non-essential services will be
compelled to take recoverable paid leave
Government measures in key jurisdictions
73
