The Government extends the deadline to restructure loans guaranteed to companies

The companies and freelancers that they have received bank loans guaranteed by the State through public companies ICO, CESCE y CERSA will have more time to request the restructuring of such loans and thus alleviate your financial situation. The Minister council has approved this Tuesday to extend the term, which expired this Wednesday, until next June 1, thus taking advantage of the extension by the European Commission of the temporary and extraordinary framework of State aid due to the pandemic.

The restructuring of these loans constituted the second of the three parts of the plan of 11,000 million in support to the private sector that the Government approved last March and that included as a star measure 7,000 million in direct aid to companies. Said framework for restructurings contemplates that the offer of extensions of the expiration period; then the conversion of the credit into a participatory loan, which computes as capital; and ultimately grant direct aid to the company to pay off part of the credit. For these last two measures, 3,000 million.

The #VoucherLines from @ICOgob They have deployed guarantees for an amount of € 101,449 million that have enabled the mobilization of more than € 133,346 million in financing to the productive fabric in 1.1M operations.

➡️More than 98% of the benefited companies are #pymes and # self-employed. pic.twitter.com/P69HQs2bxD

– Economic Affairs and Digital Transformation (@_minecogob) November 12, 2021

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The Government has extended until June 1 the period in which companies and freelancers who have not yet applied for a guaranteed loan they can ask for it. For more than 1.13 million companies With guaranteed credits, it has also modified the code of good practices that it approved in May, to which 102 financial entities have adhered. Said companies and freelancers may now request the extension of the repayment period and the conversion of the loan into a participating loan until the next June 1, 2022, while the request for direct transfers for the reduction of the principal (accompanied by a proportional reduction of the part not guaranteed, and also subject to agreement between the parties) may be made until the June 1, 2023.

In addition, the Executive has expanded the maximum aid that a company can accumulate from 1.8 million euros to 2.3 million per beneficiary in general. Likewise, it has modified the code of good practices so that the affected by the volcano of La Palma that have subscribed credits guaranteed by the Official Credit Institute (ICO) can benefit from the moratorium approved by the emergency situation established in Royal Decree-Law 20/2021. Those affected may benefit from an extension of the maturity of their guaranteed loans, even if they are in default or non-payment of financing or their turnover has not fallen more than 30% in 2020.