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The Ministry of Economy leaves all the filters in the granting of credits with public guarantees to SMEs and large companies that do not exceed 50 million euros, "without prejudice to subsequent checks on their eligibility conditions," as stated in the fine print of the initiative launched by the Government and published this Thursday in the BOE.

If the amount of the new loan exceeds that amount, the risk analysis prepared by each bank will be complemented with another carried out by the public body based on the eligibility conditions of the company that requests it.

The agreement published in the BOE also details the cost of the guarantees that the financial institutions that sign up for the program will have to pay and that, foreseeably, will be passed on to their clients.

These figures will range between 20 and 120 basis points depending on the volume of the loan and its maturity date. For example, all loans with an amount of less than 1.5 million euros and a maturity of less than one year will include a guarantee cost of 3,000 euros, while for one of 50 million euros and a maturity of more than 3 years, it will exceed the 500,000 euros.

The collection of these guarantees will be included in a provision fund with which the Ministry of Economy led by Nadia Calviño intends to defray the cost of those guarantees that are executed for non-payment of credit.

Public coverage will reach 80% in loans to SMEs, 70% in new lines to large companies and 60% in renewals of current loans.

The agreement details that the financing lines are intended "to meet the financing needs derived, among others, from payment of wages, invoices, current needs or other liquidity needs, including those derived from maturities of financial or tax obligations ".

This last point has irritated the self-employed associations and small companies, who ask not to have to go into debt to pay taxes when at the moment they do not have any activity in many cases.

10 more days of waiting

The agreement published in the Official State Gazette grants another 10 days to the Official Credit Institute to "arrange what is necessary for the effective implementation of this line of guarantees", although it is guaranteed that it will cover new credits granted since the past 17 of March.

This macro agreement to which financial entities may subscribe will also establish the recovery procedures and guarantees that entities will have for unpaid credits and the processes through which they can then claim that cost from the State.

According to the criteria of The Trust Project

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