• This line is part of the plan to reactivate the economy and employment
  • The new Line of Guarantees aims to promote new investment in areas where greater drag and added value are generated, around two axes, mainly, environmental sustainability and digitization
  • The public-private collaboration model is maintained with financial entities
  • The Guarantee Line launched last March to guarantee the liquidity of the self-employed and companies is efficiently fulfilling its objective and registers one of the highest percentages of use in Europe

The Council of Ministers today approved the creation of a new Line of Guarantees, which will also be channeled through the Official Credit Institute (ICO), for an amount of 40,000 million euros, aimed at promoting the realization of new business investment projects.

This measure is part of the plan to reactivate the economy and employment and aims to support new investment projects in the productive fabric, after a first phase in which the coverage of liquidity needs prevailed.

The new line is aimed at boosting investment activity and promoting it in the areas where the greatest added value is generated, around two main axes: environmental sustainability and digitization.

Given the high use of the previous Line of Guarantees, intended to cover liquidity needs, and the optimal operation of the public-private collaboration model, it is planned to replicate the approval and management mode, in order to optimize resources and capillarity of the arrival of the funds to the productive fabric.

The specific characteristics of the Line of Guarantees, percentage of coverage and distribution by sections will be approved by Agreement of the Council of Ministers in the coming weeks.

Balance Line of Guarantees for liquidity

The Line of Guarantees to guarantee liquidity was one of the first measures put in place to protect the productive fabric after the state of alarm was declared. It was approved on March 17 and its design and management is allowing Spain to be among the main economies in the euro area with the highest use of public guarantees.

The 100,000 million approved have already been released by the State, which has allowed, to date, that companies and the self-employed receive 85,150 million euros in financing to meet liquidity needs. With data as of July 1, 663,995 operations have been approved, with a guaranteed amount of 64,725 million euros.

The largest volume of operations and financing is concentrated in SMEs and the self-employed, with 648,065 loans approved, 97.6% of the total, and a guaranteed amount of 46,777 million euros. This has allowed channeling 58,525 million euros of financing to guarantee liquidity and cover working capital needs.

The rest of the companies have received 26,493 million euros in financing, through 12,662 operations guaranteed with 17,843 million euros.

Source of the new