Valencia Institute of Finance (IVF) will finance financial instruments provided to companies and self-employed individuals affected by the rise in energy prices and the Russian invasion of Ukraine at 0 interest. Through the Reactive Plan, which has a total of 944 million euros, IVF has designed two lines of financing for the total amount. 150 million € Its aim is to provide the necessary liquidity to the companies most affected by the energy crisis and to fight inflation.
“As the main instrument of Consell’s financial policy, IVF once again plays a fundamental role in the implementation and execution of this plan,” its director Manuel Illueca valued the work that the organization develops on a daily basis. “to be in Direct and permanent contact with Valencia productive fabric, This allows us to identify the most pressing needs of self-employed and Valencian companies”.
For this reason, Illueca reiterated that IVF has become “the perfect interlocutor with the Government and the most useful tool to provide a quick and effective response to any macroeconomic or exceptional situation, just as with the service we have designed for us”. A line that focuses on needs record time”.
150 million in two financial instruments
The two action lines of the Reactive Plan for energy emergency response and fighting inflation, managed by the Valencia Institute of Finance, allocate a total of 150 million euros for “for”. especially to meet working capital needsResponding to the most pressing needs identified among Valencia companies whose activities are affected by the current macroeconomic situation,” underlined Manuel Illueca, IVF managing director.
On the one hand, up to 100 million euros, without interest or financial costs, will be mobilized to support the working capital of industries and companies whose turnover is affected by the war and the rise in energy prices in general.
In this line, sectors that have seen the production costs increase due to the increase in the costs of energy resources and that have suffered from the economic crisis can be added. Decreased demand for your productseither because of the loss of purchasing power of customers or because of the impact of the war on export markets.
Unlike other financing lines managed by IVF, in this case the public enterprise and Economy Model under the Ministry of Finance will fully subsidize the financing costs of loans obtained from commercial banks with the AFIN-SGR guarantee.
To this end, IVF will have a budget line of 20 million Euros, where the Valencia Community SGR will increase its equity and reduce the cost of financing provided by private banks to 0%, up to a maximum of 100. million euros.
In addition, IVF will allocate an additional 50 million euros to the launch of the IVF-Affine Circulating Gas Stations subsidized Line specially designed for this sector. to compensate all citizens for the increase in fuel prices“.
The objective of the Valencia Institute of Finance is to provide short-term liquidity to finance the working capital requirement and to complement the financing provided by the Ministry of Finance.
This Line will have the support of Afín-SGR, which will guarantee the operations, thus eliminating the need for service stations to provide other types of guarantees.
As in the previous line, through the Promotion Fund provided by the Institute collected from profits for fiscal year 2021, IVF will bear the financing costs, so the cost of financing for clients will be 0%.