The Council of Ministers has approved extending the provision of the ICO mediation lines to 2012 to 22,000 million euros and redirecting some of them, to facilitate financing for companies, particularly SMEs and entrepreneurs, their main recipients. The objective is to improve the operation of these financing lines and thus constitute a more effective vehicle to support the business fabric.

To do this, two key elements are modified:

  • The endowment of the lines is extended. The provision initially planned for 2012 rises by 15.8%, to 22,000 million euros. Regarding the use of the lines in 2011, the increase is close to 40%. This increase has no budgetary impact, since the ICO captures financing in capital markets.
  • Prices are adjusted. A reduction in the cost to the end customer is intended as a result of the expected improvement in the financing cost of the ICO. Likewise, the margin of financial institutions is slightly increased in order to encourage the commercialization of ICO lines. This margin is the compensation that entities perceive for assuming the risk of operations.

In addition, some lines are redirected.

  • ICO-Investment Line. It finances investment projects in the interior that include the acquisition of productive fixed assets, vehicles or companies. The endowment is increased from 8,000 to 9,000 million euros and the possibility of working capital financing is included, with the limit of 10% of the total financing amount.
  • ICO-Internationalization Line. It finances investment projects abroad, including the acquisition of fixed assets, vehicles or companies. The allocation doubles up to 2,000 million euros, including an additional financing tranche, without bonus, of 1,000 million euros. The possibility of circulating financing is included, with the limit of 20% of the total investment.
  • ICO-Liquidity Line. It finances working capital to freelancers and companies that face temporary situations of credit restriction. The endowment increases, from 6,000 million euros to 8,000 million euros.
  • ICO-Entrepreneurs line. It replaces the ICO-Business Development Line. It finances investment projects for freelancers and professionals who have started their activity in the last five years. The endowment increases, which goes from 750 million euros (not counting the “capitalization” section, which disappears) to 2,000 million euros.
  • ICO-Housing line. Promotes the rehabilitation of homes and buildings. It has a budget of 1,000 million euros. As a novelty the financing of the reform of common elements of the buildings is allowed. The so-called “Housing stock tranche” that facilitated financing for housing developers is eliminated with the condition that the homes be rented. This elimination occurs in coherence with the policy of giving out to the housing stock.

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