Note 1 - Financial Measures COVID-19 - ICO lines - 30 March 2020 - Morison KSi
←
→
Page content transcription
If your browser does not render page correctly, please read the page content below
Note 1 - Financial Measures COVID-19 - ICO lines
30 March 2020
1Financial Measures COVID-19 – ICO Lines 2
COUNCIL OF MINISTERS OF 12 MARCH 2020
The first plan was approved by the Council of Support measures for the business sector
Ministers on 12th March and involves the
mobilisation of more than 18 billion euros. • Flexibility in tax deferrals
The measures were articulated in a Royal • Specific financing line through the Instituto de Crédito Oficial of EUR 400 million for
Decree-Law. the tourism sector
• Companies that have received loans from the S.G. General for Industry and Small
and Medium Enterprises are allowed to defer repayment.
• Extension of Social Security rebates for discontinuous fixed contracts made
between the months of February and June in sectors linked to tourism activities.
• Non-application of the rule regulating the use of landing slots for the next seasons.
This exemption would allow airlines not to be penalised in future for having reduced
their flights in the current circumstances.Financial Measures COVID-19 – ICO Lines 3
COUNCIL OF MINISTERS OF 17 MARCH 2020 (DRS 8/2020)
On 17th March the Council of Ministers approved Measures to ensure corporate liquidity and stability
a Royal Decree-Law that includes measures to
support families; help for workers and the self- • The State, through ICO, will provide guarantees up to 100 billion euros to facilitate
employed; support companies with liquidity and financing for companies and the self-employed
flexibility to preserve jobs and enhance the fight • Creation of an insurance coverage line on behalf of the State through CESCE for an
against disease. amount of up to 2 billion euros for financing working capital.
• The ICO's debt limit for the self-employed and companies is increased by 10 billion
These measures allow the mobilisation of up to euros.
200 billion euros in loans, with public guarantees • The period for answering requests and other procedures of the Tax Agency is
of up to 100 billion euros and an estimated public extended.
expenditure of around 5 billion euros. • The suspension of public contracts affected by COVID-19 is regulated.
• It includes flexibility measures for trading companies (meetings of governing bodies,
formulation of accounts, holding of meetings or deadlines for submission of registration
documents).
• The deadlines for a debtor in a state of insolvency to apply for a declaration of
bankruptcy are made more flexible.Financial Measures COVID-19 – ICO Lines 4 COUNCIL OF MINISTERS OF 24 MARCH 2020 The characteristics of the first section of the ICO guarantee line for companies and the self-employed have been approved. • The Guarantee Line will guarantee new loans and renewals by EF (“Entidades Financieras” - Credit Institutions) to businesses and self- employed individuals. • Lines managed by the ICO, in collaboration with the EF. • The Guarantee Line was approved with an allocation of up to the first tranche activated in the agreement for EUR 20,000 million, of which 50% will be reserved to guarantee loans to the self-employed and SMEs. • Destination: companies and self-employed people affected by the economic effects of COVID-19 (not in default on 31 December 2019 and in bankruptcy proceedings on 17 March 2020). • They are retroactive and can be requested for operations formalized after March 18. • The guarantee will guarantee 80% of the operations requested by the self-employed and SMEs and 70% of other companies and 60% of renewals. • Term equal to the term of the loan granted, with a maximum term of five years. • No charge. The cost of the guarantee assumed by the financial institutions. • Deadline until 30 September 2020 for financial institutions. • RU commitment to maintain costs and limits on new loans and renewals.
Financial Measures COVID-19 – ICO Lines 5
CORE FUNDING
ICO processing scheme
• Conditions (APR, deadlines, shortages) set by ICO
• Processing in financial entities that study, approve and formalize
• Risk criteria established by each financial institution
• Maximum APR is negotiated with the Financial Entity (maximum including commission and
interest established by the ICO)
• Risk assumed by the Financial Institution
• Guarantees established by each Financial InstitutionFinancial Measures COVID-19 – ICO Lines 6
ICO LOAN SUMMARY
ICO TOURISM SECTOR
ICO COMPANIES AND SELF-EMPLOYERS ICO COMMERCIAL CREDIT ICO SGR/SAECA GUARANTEE
AFFECTED BY COVID-19
-Self-employed, entrepreneurs, public and private entities
(companies, foundations, NGOs, public administration) both Self-employed, entrepreneurs or all types of public or private
Self-employed persons and companies with a registered Self-employed persons, entrepreneurs and companies with a
Spanish and foreign, provided that they carry out their companies and entities that have the guarantee of a Mutual
Destination office in Spain that formalise operations in the ICO Business registered office in Spain who wish to obtain liquidity by
business activity in Spain when they wish to carry out Guarantee Society (MGS) or the State Agricultural Surety
and Entrepreneurship Line, whose activity is within a CNAE in means of advances on invoices from their commercial
business activities and/or investments, cover liquidity needs Company (SAECA), who wish to carry out business activities
the tourism sector and related activities according to the activity within the national territory, or to cover the
or expenses within the national territory. and/or investments, cover liquidity needs or the expenses of
published list of CNAE. production costs of the goods being sold in Spain.
the activity both in Spain and abroad.
-Individuals and communities of owners who wish to
rehabilitate their home or building.
Directly through the credit institutions, in the Mutual
Where is it Directly through the Credit Institutions that collaborate with Directly through the Credit Institutions that collaborate with Directly through the Credit Institutions that collaborate with
Guarantee Societies (www.cesgar.es) or in SAECA
requested? the ICO. the ICO. the ICO.
(www.saeca.es)
Maximum
Up to 12.5 million Euros of live insurance per client and year,
amount per Up to 500,000 Euros, in one or several operations. Up to 12.2 million Euros, in one or several operations. Up to 2 million Euros in one or several operations.
in one or several operations.
customer:
Financeable -Liquidity requirements that can be financed through the -Business and/or investment activities and liquidity needs -Business and/or investment activities and liquidity needs
-Invoice advance
concepts: Business and Entrepreneurship Line. within the national territory. inside and outside the national territory
-Digitalisation projects and in particular those aimed at -Digitalisation projects and in particular those aimed at
promoting teleworking solutions included in the Acelera promoting teleworking solutions included in the Acelera
Pyme Programme. Pyme programme.
-Rehabilitation of houses and buildings.
Mode of Financing contract agreed between the client and the Credit
Loan Loan, leasing, renting or line of credit Loan, lease or line of credit
operation: Institution.
Interest Fixed or variable, plus the margin established by the credit Variable rate, plus the margin established by the credit Fixed or variable, plus the margin established by the credit
Fixed, up to 1.5% (maximum APR included in fees)
rate: institution according to the repayment term. institution institution according to the repayment term
Repayment and From 1 to 20 years with the possibility of up to 3 years of From 1 to 15 years with the possibility of up to 3 years of
From 1 to 4 years with a 1 year grace period
grace period: grace on the principal, depending on the term grace on the principal, depending on the term
The MGS/SAECA may charge a study fee of up to 0.5% of the
guaranteed amount. In addition, the MGS may charge a
The Credit Institution may charge a single fee at the The Credit Institution may charge a single fee at the
The Credit Entity may charge a single fee at the beginning of social security contribution of up to 4% of the guaranteed
Commissions: beginning of the operation, in addition to the early beginning of the operation, in addition to the early
the operation, in addition to the early repayment fee, if any. amount. In addition, the credit institution may charge a
repayment fee, if applicable. repayment fee, if applicable.
single fee at the start of the transaction and, where
appropriate, an early repayment fee.
To be determined by the Credit Institution, unless To be determined by the Credit Institution, unless To be determined by the credit institution and/or the MGS or
Guarantees: To be determined by the credit institution
guaranteed by the MGS or SAECA. guaranteed by the MGS or SAECA. SAECA
It will be possible to formalize operations with the Credit It will be possible to formalize operations with the Credit It will be possible to formalize operations with the Credit
Validity: Loans may be made until 31 December 2020
Institution during the whole year 2020. Institution during the whole year 2020. Institution during the whole year 2020.ilv silver can assist you in the preparation of the documentation and the necessary steps to obtain financing. Contact persons: Barcelona office (phone nº +34 932 411 670) - Albert Ruiz - aruiz@ilvsilver.com - Francesco Lais - flais@ilvsilver.com Madrid office (phone nº. +34 917 885 316) - Adrian Hewitt - ahewitt@ilvsilver.com
You can also read
