The first ICO lines of European loans for companies and households will have a minimum savings of 8% on interest payments.

Minister of Economy, Trade and Business, Carlos Bodieand President of the Official Credit Institute (ICO), Jose Carlos Garcia de Quevedosigned this Monday an agreement establishing conditions for distribution 30.150 million euro financing financed by European Next Generation funds. This is about ICO-Green Line (22,000 million euros) intended for households and companies for green investments, as well as Companies and entrepreneurs of the ICO line (EUR 8,150 million) intended to finance business growth, which will represent Minimum savings of 8% on interest payments. relative to average sector financing.

In the case of the ICO-Verde line, actions such as purchasing electric vehicles for delivery or replacing refrigeration chambers with others that are more efficient hotel. Also digitalization of water to avoid leaks in agricultural sector and if this is an individual for purchase of electric vehicles or improvement Energy efficiency of buildings. In the case of the ICO line of companies and entrepreneurs, the focus is on growth, with 1000 million reserved specifically for the tourism sector and 150 million for the new Perte language.

Loans will be sent through four financial instrumentsof which financing through banks It is the main one, adding up to 60% of the planned resources (12,000 million under the ICO-Green line and 5,150 million under the ICO Companies and Entrepreneurs line), although banking institutions must still adhere to the program “in the coming weeks” Thus, the availability of funding will be occur “throughout the summer,” state bank sources say.

The ICO will provide resources to banks, and organizations will be responsible for conducting transactions with their clients. take risks alone that he doesn’t pay them. The bank will finance up to 100% of the investment project with financing terms agreed by the parties from 1 to 20 years and with the possibility of agreeing on grace periods of up to three years. There will be no maximum or minimum amount.

He type of interest will depend on the cost of European Commission funding (approx. 0.2 or 0.3 points lower to the Treasury). But the ICO will establish APRIL (cost of loan, including interest rate, as well as bank commissions and other expenses) maximum “flexible enough” to allow you to access finance for companies with lower credit quality. In the worst case scenario, according to state bank estimates, Minimum savings of 8% of the total amount payable during the transaction. compared to average sector funding.

Administrative simplification

In all cases this finalist investments, which must align with climate change or business growth goals. Although the ICO line “Companies and Entrepreneurs” allows you to finance up to 50% of the circulation related to investments. It should be economically profitable projects and what they don’t produce double financing funds from the European Commission, which does not mean that they cannot finance extension project that received European investment in advance. Under no circumstances can they be used to restructure or cancel debt.

The projects they get financing less than 10 million euros – which will affect almost all financing of small and medium-sized businesses and self-employed people, that is, those where there is banking intermediation – may be subject to Motorway in their application, since it is enough for them to submit responsible declaration to demonstrate that they adapt to line conditions. The ICO is responsible for verifying these documents automatically and within a period that will not last more than three days, so as not to increase costs for companies. The risk of transaction and acceptance will be borne by the banking institution.

Other tools

The remaining 30% of the money will be channeled through other instruments: direct ICO funding, bonds or equity investments. In the first case, it is planned to allocate 5,000 million for ICO-Green projects And 1000 for ICO companies and entrepreneurs aimed at financing “tractor” projects of large companies. In fact, only 70% of the total project cost, and the remaining 30% must be contributed by other financial institutions or the private sector. The transactions will be approved by the board of the state-owned bank, which assumes the risk.

Other 2.5 billion (2000 million in the case of ICO-Verde and 500 in the case of ICO Empresas y Emprendedores) target Spanish companies with debt issuance programs on organized markets to finance up to 70% of the issuance and others 4.5 billion (3,000 million from ICO-Green and 1,500 million from ICO companies and entrepreneurs) to capital investments through Axis, venture capital manager ICO up to 49% of fund size, so at least 51% is private.

Three more lines

To these two pillars – ICO-Verde and ICO Companies and Entrepreneurs – three more must be added to complete a total of almost 40,000 million loans from European funds managed by the state bank as part of the second phase of the Recovery, Transformation and Resilience Plan. The three remaining lines are expected to be signed “in the coming weeks,” according to ICO sources. One of them is a $4 billion fund to increase social housing park and affordable rentals of approximately 40,000 homes through public or private developers. The other two are Next-Tech ICO Fund (4000 million to promote the growth of technology startups) and “Audiovisual Center of Spain” (1.712 million for the audiovisual games and video games sector).

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