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Government approves first tranche of 5,000 million ICO guarantee due to the effects of war

The Council of Ministers this Tuesday approved the first tranche of 5,000 million euros of a new line of official…

By admin , in news , at May 10, 2022

The Council of Ministers this Tuesday approved the first tranche of 5,000 million euros of a new line of official credit institution guarantees (ICO) so that companies and freelancers face the economic impact of War in Ukraine after the Russian invasion.

This was announced by the government spokesperson and regional policy minister, Elizabeth RodriguezAt the press conference after the Council of Ministers, in which he recalled that the measure is part of the war response plan approved by the Executive and valid in the Congress of Deputies.

The government has deployed this first tranche of a new line of guarantees, with a maximum of ₹10,000 million, to guarantee access to liquidity for companies affected by increases in energy costs or raw materials derived from the war in Ukraine.

For guaranteed amounts up to EUR 400,000, The guarantee is up to 80% covered through the guarantee of loan amount, with a financial tenure of up to 10 years. In loans over EUR 400,000, with repayment periods of up to 80 years, 80% of new financing is guaranteed to self-employed and SMEs and up to 70% to other companies.

All companies, regardless of the guarantee they request, will be entitled to an initial grace period of 12 months, as explained by a government spokesperson.

750,000 companies financed by COVID guarantee lines

During the post-Council of Ministers press conference, Isabel Rodriguez recalled that this is not the first time that the government has implemented extraordinary measures of these characteristics and referred to the ICO-Covid guarantee lines.

About 750,000 companies have been financed from this ICO-Covid line, most of them SMEs and Freelancersand they came to mobilize €140 billion To mitigate the impact of the crisis, especially in the most affected sectors such as transport, consumption, commerce or textiles. Territorially, they are highly sought after in the communities of Madrid, Andalusia and Catalonia.

“The proper functioning of this line has once again caused the government to face yet another crisis in favor of companies and the self-employed to maintain their economies,” the spokesperson stressed.