25th May 2022
Isabel Rodríguez
Barcelona News Business Catalonia News Economy & Employment Madrid News Main News

Spain approves line of guarantees to ensure liquidity of companies

The Spanish government has approved the characteristics of the first tranche of a line of guarantees for self-employed workers and companies, for a total of €5 billion – and which will increase to a maximum amount of €10 billion.

The first tranche is aimed at self-employed workers and businesses in all sectors of the economy affected by the Russian invasion of Ukraine, with the exception of the financial and insurance sectors. 

This line supports access to funds for companies affected by increasing energy and raw material costs and is part of Spain’s National Response Plan to the Economic and Social Consequences of the War in Ukraine.

Announced at the end of March, the government led by Pedro Sánchez promised a package of economic support measures worth €6 billion in direct aid, tax breaks and fuel subsidies, plus a further €10 billion in loans for families and businesses affected by the fallout from the Russian war against Ukraine.

Government spokeswoman Isabel Rodríguez said on Tuesday that the aim is for companies to be able to keep operating. She specified that, for guaranteed amounts of up to €400,000, the guarantee covers up to 80% of the amount of the loan and the term of the financing can be up to 10 years.

For larger loans, 80% of the new financing will be guaranteed for self-employed workers and small or medium-sized companies, and up to 70% for other companies. They will have a repayment period of up to eight years. All companies will be entitled to an initial grace period of 12 months on the principal loan.

Isabel Rodríguez said that the government had also set up an exceptional Covid line to deal with the economic consequences of the pandemic. It financed almost 750,000 companies, mostly SMEs and self-employed workers, and mobilised €14 billion. The sectors that benefited most were transport, food distribution, trade, textiles and fashion.

The spokeswoman said that behind these figures ‘there are people, households and families who have been able to establish their businesses and stay in employment’.

Rodríguez also announced that the cabinet plans to discuss the reduction of electricity bills for households and companies next Friday. The European Commission has now pre-authorised the electricity cost-cutting proposal submitted jointly by Spain and Portugal and that both governments are now working to make the necessary adjustments and approve the mechanism in parallel.

Isabel Rodríguez
Government spokeswoman Isabel Rodríguez at the press briefing on Tuesday. (Pool Moncloa)

Sign up for the FREE Weekly Newsletter from Spain in English.

Please support Spain in English with a donation.

Click here to get your business activity or services listed on our DIRECTORY.

Click here for further details on how to ADVERTISE with us.

Recent Posts

Spain is to invest $13 billion to build its microchip industry

News Desk

F1 driver Sebastian Vettel chased bag snatchers in Barcelona using GPS signal

News Desk

Supreme Court to allow appeals against pardons given to Catalan independence leaders

News Desk

Police investigate ‘honour killings’ of Pakistani-Spanish sisters who lived in Catalonia

News Desk

Catalonia and Aragón unable to agree on joint bid for 2030 Winter Olympics

News Desk

Unvaccinated, non-EU tourists can now visit Spain by showing negative test on arrival

News Desk

Leave a Comment