Corona pandemic – Spain launches guarantee programme of up to 100 billion euros to support companies and self-employed professionals
On 24 March 2020, the Spanish government launched a guarantee scheme to provide liquidity to companies and self-employed professionals (Autónomos). This is intended to eliminate financial bottlenecks caused by the Corona pandemic.
Of the 100 billion euros provided, a tranche of 20 billion euros will initially be made available. At least half of this is intended for medium-sized companies with up to 250 employees and self-employed persons.
The precondition for granting these guarantees is that the companies have not been in default of payment (Situación de morosidad) as of December 31, 2019 and that no insolvency proceedings (Procedimiento concursal) have been initiated by March 17, 2020.
The guarantees have a maximum term of five years.
In the case of SMEs and self-employed persons, 80% of the loans can be secured. For large companies the guarantee coverage is only 70%. Refinanced loans can only be secured by guarantees at a rate of 60%.
Depending on the duration of the guarantees, fees of 20 BP up to 120 BP p.a. will be charged.
The Instituto de Crédito Oficial (ICO), a state-owned credit institution, is responsible for issuing guarantees. The ICO administers the issuance of guarantees in cooperation with the commercial banks.