The ICO will give the 20,000 million to banks without attending to their market share

The ICO will give the 20,000 million to banks without attending to their market share

© Provided by Vozpopuli

He Official Credit Institute (ICO), which is in charge of managing the lines of guarantees granted by the Government to facilitate access to credit to face the economic impact of the Covid-19, through financial institutions, will not attend to market share that each bank has to distribute among them the first 20,000 million of euros, will do it on demand.

The Council of Ministers approved on March 24 the conditions to access the first tranche of guarantees granted by the Ministry of Economic Affairs and Digital Transformation, for an amount of 20,000 million euros (out of a total of 100,000 million), published in the Boe on March 26.

The tranche of 20,000 million is divided into one of 10,000 million for renewals and new loans granted to self-employed workers and SMEs, and in another for the same amount for large companies.

The financial sector says that it is prepared to receive the avalanche of loans for Covid-19 and that it will not collapse like the sanitary

In the first case, entrepreneurs only require the authorization of the bank, while for loans from more than 50 million The last word will be the ICO (the measure is finalized on the website of the public body), which will allow it once the bank has analyzed the risk of the loan and decided to grant it.

Financial sources consulted considered that banks they would access the guarantees depending on their market share. Santander, BBVA and Caixabank, like the rest of the financial operators, would access an amount of 20,000 million euros to grant loans to their clients proportional to their market share.

From the ICO it has been explained to this newspaper that the money to the bank will be delivered on demand, which is the system that the body usually uses when it provides lines of guarantees. However, the sources consulted indicate that this is a first batch of 20,000 million out of a total of 100,000, and that the operation can be adapted.

Avalanche of requests

Santander and Caixabank have already started a television campaign to offer this type of loan, and the rest of the entities are preparing to receive a avalanche of requests of loans guaranteed by the State to face the impact of the coronavirus.

The first ICO loans for the Covid-19, of 400 million for the tourism sector, have been exhausted in less than ten days

The entities are waiting for the definitive conditions of the new ICO Liquidity Covid 19 guarantee lines to be published between today and tomorrow, and the Agreement with the body chaired by Jose Carlos Garcia de Quevedo.

The banks consulted by this newspaper indicate that they plan to be able to formalize the first loans. ICO Lines Covid-19 in the middle of this week. In any case, the loans requested to face the impact of the coronavirus from March 18 can be adapted to the conditions contemplated in the new loans with the guarantee of the public body.

Financial sources, and also from the consulting sector, estimate that the distribution between the banks of the 20,000 million euros on demand, and not by fee, can lead to more confusion, and that both clients and entities rush to request them and everything becomes a race to be the first.

The first loans endorsed by the ICO to combat the impact of the coronavirus, which were announced by the Prime Minister, Pedro Sanchez, on March 12, endowed with 400 million euros and aimed at the tourism sector, have been exhausted in less than ten days since they were made available, according to financial sources.

The management of the 20,000 million that the ICO and banks will have to undertake is comparable to that which had to be carried out due to the financial crisis

The management of the 20,000 million that the ICO and the bank will have to undertake is only comparable to the one that had to be carried out between 2013 and 2014, when guarantees of 19,000 million euros were granted to combat the economic and financial crisis.

The ICO insists that the body is equally prepared to face the requests that will be presented in the coming days, and to adapt the operation to the needs that appear.

The entities will try that all the management of the loans guaranteed by the ICO can be done through the internet; sector sources maintain that the Spanish financial system is ready and that will not collapse as it has happened with the health sector.


Please enter your comment!
Please enter your name here