Publication вЂ“ Newsletter March 2020 вЂњConfronting the impact that is economic of Spain: the approval of a type of general general public guarantees on loansвЂќ
Following a Royal Decree 463/2020 (Real Decreto 463/2020, de 14 de marzo, por el que se declara el estado de alarma para la gestiГіn de la situaciГіn de crisis sanitaria ocasionada por el ) declaring a situation of Emergency in Spain at the time of 14 March 2020, the Royal Decree-Law 8/2020 of 17 March on urgent and extraordinary measures to confront the economic and social effect of (genuine Decreto-ley 8/2020, de 17 de marzo, de medidas urgentes hacer that is extraordinarias para al impacto econГіmico y social del ), which arrived into force on 18 March 2020 (hereinafter, the вЂњRDL 8/2020вЂќ), approved a collection of extraordinary measures to confront the economic and social effect of in Spain.
On the list of certain conditions targeted to guarantee liquidity and usage of finance by organizations while the self-employed to sustain their financial task, RDL 8/2020 provides a line of general public guarantees on funding provided by financial institutions to organizations as well as the self-employed for a maximum number of EUR 100,000 million (hereinafter, the вЂњLine of GuaranteesвЂќ).
The European Commission adopted and published on 19 March 2020 a short-term Framework for State help measures to aid the economy into the current outbreak, developing the compatibility conditions that it will probably use to assist issued by Member States under Article 107(3)(b) associated with Treaty for the Functioning associated with the European Union (TFEU). The assist in the type of guarantees on loans is among the five kinds of State help that the European Commission considers suitable and that may be authorized rapidly upon notification by each Member State, provided the appropriate needs established in the Temporary Framework for State help measures are met.
SpainвЂ™s certified Gazette has posted today the resolution adopted by the Council of Ministers (Consejo de Ministros) on 24 March 2020, approving the conditions and terms that will govern the public guarantees given beneath the very first tranche associated with the type of Guarantees.
Level of the Line of Guarantees
The Council of Ministers has authorized a tranche that is initial of 20,000 million, even though RDL 8/2020 supplies the approval of a line of Guarantees for the maximum number of EUR 100,000 million.
Up to EUR 10,000 million for the tranche that is initial be assigned to guarantee loans provided to little and medium enterprises (вЂSMEsвЂ™) and also the self-employed, whereas the staying EUR 10,000 million is assigned to guarantee loans to big enterprises.
The dedication of this loans qualified to be assured will be based upon the borrower, the kind of loan and lender(s) plus the quantity in addition to maturity of this loan.
The guarantees are released to secure loans awarded to businesses (SMEs and big enterprises) also to the self-employed with authorized workplace in Spain impacted by the financial impacts of outbreak so long as they certainly were maybe perhaps not: (i) for a late/delayed repayment situation on 31 December 2019 in line with the Bank of SpainвЂ™s danger Information Centre (CIRBE) and (ii) susceptible to insolvency procedures at the time of 17 March 2020.
Form of loan and s that are lender(
Brand New loans as well as other funding techniques along with renewals of loans awarded by https://speedyloan.net/title-loans-de credit entities (entidades de crГ©dito), financial credit organizations (establecimientos financieros de crГ©dito), electronic cash entities (entidades de dinero electrГіnico) and re payment entities (entidades de pagos), no matter what the way to obtain capital, to organizations also to the self-employed after 17 March 2020 to pay for their monetary requirements associated, and others, with wage re payments, invoices, working capital or any other liquidity requirements, including those due to maturities related to obligations or fees, will likely be entitled to be assured.
Maximum number of qualified loans per customer
When it comes to more than one financing transactions as much as EUR 1.5 million, the precise provisions of Commission Regulation (EU) No 1407/2013 of 18 December 2013 in the application of Articles 107 and 108 regarding the Treaty regarding the Functioning for the eu to de minimis aid shall use.
When it comes to loans exceeding EUR 1.5 million, the utmost amounts given by the Temporary Framework for State help measures to aid the economy into the current outbreak shall use, and properly: