two weeks later, companies are still illiquid

two weeks later, companies are still illiquid

The President of CEIM and Vice President of CEOE, Miguel Garrido.

The president of the Madrid employers Ceim, Miguel Garrido, denounced on Thursday the fact that after two weeks of the official announcement, many businessmen still cannot access the ICO guarantees because the Government has taken too long to articulate the transmission mechanism to financial institutions.

“The government unilaterally paralyzes the economy, intervenes labor relations by introducing more rigidity, does not eliminate fiscal commitments and it takes two weeks to offer companies a line of liquidity to face this terrible situation,” said the representative of the employers of Madrid.

The Government announced 100,000 million in loans with public guarantee of which it will only release 20,000 million in that first phase that the companies expected this week and has not yet been made available to them. The large Spanish banks are planning to sign this Monday the agreement with the Official Credit Institute (ICO) to begin disbursing aid for companies affected by the coronavirus crisis, according to sources familiar with the Economist. The forecast of the experts, however, is that the first tranche of guarantees will run out during the first week.

Garrido assessed this Monday in an interview with the Economist the liquidity measure as a success of the Government that would help entrepreneurs in their eagerness to maintain their businesses and jobs, but he already warned that a delay in its activation would weaken our companies and noted that the The first tranche of 20,000 million is insufficient.

Lack of sensitivity to the productive tissue

According to Miguel Garrido, “companies urgently need to be able to access liquidity because revenues have been drastically reduced or have disappeared and we do not know what is going to happen in the future, but we want to keep our companies and jobs. This two-week delay is a new lack of sensitivity on the part of the Government to the productive fabric. ”

This delay of two weeks is a new lack of sensitivity of the Government with the productive fabric

Garrido has asked the Government to enable another section of this line of guarantees motivated by the economic slowdown because he anticipates that these first 20,000 million will be exhausted as soon as they effectively reach the group of entrepreneurs and self-employed workers who are waiting for him with extreme urgency.

Meanwhile, employers continue to demand tax moratoriums from the government. They criticize that before the productive stop the tax maturities are maintained


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