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The Prime Minister, Pedro Sánchez, has announced that the Council of Ministers will approve next Tuesday a new line of ICO guarantees for the amount of 20,000 million euros.

At a press conference from the Palacio de la Moncloa, Sánchez has indicated that more than 90% of the lines of previous guarantees that have been approved have been addressed to SMEs and the self-employed .

This new line of ICO guarantees, amounting to 20,000 million, is the fourth approved by the Government , bringing the total amount to 80,000 million out of the total of 100,000 million approved by the Government.

Sánchez took the opportunity to return to ask the financial sector to be "dynamic and agile enough" so that the guarantees reach fundamentally SMEs and the self-employed, "who are the ones who need it the most."

The Council of Ministers approved on May 5 the third tranche of guarantees for companies by the Official Credit Institute (ICO) for a total amount of 20,000 million euros.

This third section of the ICO line was destined to granting loans and 50% of the total amount was to secure financing for SMEs and the self-employed, while the remaining 50% was destined for companies.

The lines of guarantees are managed by the ICO, in collaboration with the financial entities, which assume the cost of the guarantee, which is in a range of between 20 and 120 basis points.

The only requirement to access this guarantee is that the applicants were not in default as of December 31, 2019 and in bankruptcy procedure as of March 17, 2020.

In accordance with the criteria of The Trust Project

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