- The participation of the Official Credit Institute will be complementary and will promote the mobilization of private sector resources
The Council of Ministers has learned of the restart by the Official Credit Institute (ICO) of its financial activity with the Territorial Public Administrations. The ICO will re-finance investment projects carried out by Autonomous Communities, local entities and dependent agencies in sectors of special interest, such as water treatment, improving the energy efficiency of buildings, urban and rural rehabilitation plans, social housing for rent or sustainable mobility.
This measure is relevant because it supports the entry of Territorial Administrations into financial markets gradually. Likewise, it will promote the mobilization of resources from the private sector or international financial institutions, since the role of the ICO in financing these projects will always have a complementary character, favoring the development of public-private collaboration schemes. The ICO participates in these operations in market conditions.
The approved financing framework sets the maximum amount of this activity at 250 million euros per year, expandable to 500 million.
The agreement leaves without effect the restriction of financing to Territorial Administrations that was in force since 2012. The implementation of extraordinary financing mechanisms during the crisis – Fund of Payment to Suppliers and Line of Direct Financing to CCAA – produced a very significant increase of the relative weight of the Administrations in the ICO balance. Currently, the absence of outstanding balances of these operations leaves this restriction in effect.