Government measures in key jurisdictions 4th edition - Flipbook - Page 123
Spain
Ignacio Corbera Dale | ignacio.corbera@garrigues.com | +44 (0)20 77109416
Contributor: Garrigues
Loans and
financial
support
Has the
government put in
place any new
bank funding
schemes?
123
•
Government is granting up to €100 billion in guarantees for funding provided by credit
institutions. In this respect: 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, 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 non-SME, in accordance
with de minimis EU regulations.
•
A new line of ICO guarantees of € 40 billion (with the possibility of increasing it up to €100 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 €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 RD 25/2020 has increased the endowment granted to the fund for Foreign Investment
(FIEX), managed by COFIDES, from €10 to €100 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 midcap companies.
•
New COVID-19 fund (Fondo Covid-19) managed by the state-owned industrial holding company
Sociedad Estatal de Participaciones Industriales (SEPI) of €10 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