Following the communication sent by our Director, we will now explain in detail the measures taken concerning credit and financing lines for companies, SMEs and self-employed workers.
As we mentioned in previous communications, Royal Decree-Law 8/2020 of 17th March incorporates a series of measures designed to facilitate access to financing lines to relieve the economic effects of COVID-19, including:
- A line of guarantees to be granted by the Ministry of Economic Affairs, for companies and self-employed workers, which will comply with the European Union regulations, with the following detail:
- Financing must be granted by credit institutions, financial credit establishments and payment institutions.
- The Ministry may grant guarantees of a maximum total amount of 100,000 million euros. This is a guarantee offered by the State to private financial institutions.
The applicable conditions and requirements to be met will be determined by Agreement of the Council of Ministers.
- ICO (Official Credit Institute) financing credit lines for companies and self-employed workers. The ICO net debt limit is extended by 10 billion euros. This is a guarantee offered by the State to financial institutions through the Official Credit Institute, so that they can provide credit to companies and self-employed workers who may need it, in accordance with the financing policy of each institution.
In both cases, companies that need liquidity in order to face the consequences of the health crisis and be able to meet their current needs (payment of invoices, working capital, financial or tax obligations deadlines, among others), may have access to the financial sources through the different banking institutions, with the conditions and mechanisms established by each one of them.
Our Team is working to keep you permanently informed of any new developments in relation to the above-mentioned financial measures.
Our Firm is already in contact with the main banking institutions in order to know the requirements and specifications that each one of them proposes in terms of the concession of said financing lines and to help you manage and process them with your bank, in case you consider it necessary.
CABRERA RODRIGUEZ LAWYERS & TAX ADVISERS
Partner of ETL GLOBAL