During the meeting, Montero gave the regional councilors the details of the measures approved by the Government to date to deal with the health crisis. A shock plan that as a whole involves mobilizing more than 100,000 million euros of public resources, among the credit line guaranteed through the ICO, as well as direct aid to families, freelancers and companies, liquidity injections to the Communities Autonomous – such as the 2,800 million anticipated from the update of the payments on account – or the deferrals and payment facilities in taxes or social contributions.
To these measures we must add the contribution of the private sector that will allow a total mobilization of 200,000 million euros to address the economic, health, labor and social consequences caused by the emergency of COVID-19.
Among the measures adopted today by the Government there are several that seek to provide the Autonomous Communities with more resources to combat the coronavirus and mitigate the economic effects of this emergency. Among them, the authorization of the Ministry of Finance to apply the Contingency Fund to create an Extraordinary Social Fund of 300 million that will be transferred to the Autonomous Communities to reinforce their social policies and care for families, especially those in situations of greatest vulnerability.
Likewise, Montero has explained to the regional councilors the rule approved today that allows municipalities to allocate up to 300 million of the 2019 surplus to finance investment expenses in the area of social services and social promotion. This measure allows local entities to use the surplus beyond financially sustainable investments.
At the meeting, Minister Montero communicated the duty of the Autonomous Communities to supply the Ministry of Finance with the economic and financial information that is required on the effects derived from the actions undertaken in relation to COVID-19.
The information to be sent to the Ministry of Finance on a monthly basis by the Autonomous Communities, will be subject to a standardized form, with information relating to February 2020 being sent before March 31 and before the 15th of each month, the information referring to the previous month.
Regarding the economic and financial information that communities regularly and periodically supply to the Ministry of Finance, in view of the importance of having the most up-to-date information possible, it will continue to be provided normally, without prejudice to the fact that the Ministry can make the measure more flexible. If possible, certain questions regarding deadlines or content of the information to be sent.
On the other hand, the Minister of Finance has proposed to the counselors of Finance of the Autonomous Communities the possibility of adopting measures of flexibility in tax procedures for taxpayers who are related to the autonomous Tax Administrations.
It is a measure that would be in line with what was approved by the Council of Ministers today and that grants a greater margin of response to the taxpayer and contemplates, as regards the suspension of deadlines in the tax field, a time horizon in favor of the taxpayer which can exceed the initial validity of the alarm state.
Therefore, at the meeting it was agreed to study the possibility of implementing this measure in the autonomous tax area.
Tax debt deferral
Likewise, Minister Montero has transferred to the autonomous councilors the possibility of establishing the extraordinary postponement of the repayment schedule in loans granted by the Autonomous Communities to entrepreneurs and self-employed affected by the health crisis caused by COVID-19. A measure that must be jointly evaluated to decide on its eventual application.
Specifically, it would be that those companies and self-employed workers who are borrowers of financial credits or loans whose ownership corresponds to an Autonomous Community may request the deferment of the payment of principal and / or interest to be satisfied for the remainder of 2020.
To qualify for this extraordinary postponement, it would be necessary for said companies or freelancers to have been affected by the COVID-19 crisis with periods of inactivity, a significant reduction in the volume of sales or interruptions in supply in the value chain that make it difficult for them or prevent attending to the payment of the same. Said request should always be made before the end of the payment period in the voluntary period and should be expressly estimated by the body that issued the concession resolution.
In the event that the financial loans have been granted within the framework of agreements with credit institutions, any deferment or modification would be made in agreement with said entities.
Nor would it be applicable to participative loans, risk capital operations, hedging instruments, derivatives, subsidies, financial guarantees and, in general, any operation of a financial nature that does not adjust to financial loans in market terms.
In any case, this proposal on deferrals must still be evaluated by the Ministry of Finance and the Autonomous Communities to jointly decide on its eventual application.