Generalitat chief Ximo Puig said this Saturday Financing line from Institut Valencià de Finances (IVF) to mitigate the effects of the crisis Algeria and makes it easier for Valencian companies to continue their activities.
Puig made this announcement after speaking to the IVF director, ManualAccording to a study by the Council of Chambers, around 1,400 Valencian companies operate in Algeria, with an impact of close to 450m euros on exports, and there is also a permanent commercial connection by sea between Alicante and Orán.
Also, it advancednext week will call Valencian Business Confederation and the Chambers Council invited a meeting to analyze the situation and the impact of this crisis on the Valencian economy.
Puig pointed out that in principle nothing would happen. no discomfort in the gas field, however careful they will be, we should try to give “maximum coverage” to Valencian exports to Algeria and try not to lose the position of Valencian companies in that African country.
Regarding the IVF line, this will finance these companies’ standing working capital with a four-year loan with full repayment at maturity (known as ‘bullet’ in the jargon), a “particularly attractive” design. In September, many of these companies will begin returning the principal of their ICO loans.
Thus, Generalitat will provide financing that companies will not have to repay for four years, paying only quarterly interest at a rate equivalent to Euribor + 1.5% (this rate will apply if the operation is guaranteed by AFIN-SGR; otherwise, the interest rate will be charged by the customer will depend on credit quality).
Sources from the Generalitat said that Puig had maintained contact with the State Department over the past few hours as a result of the crisis in Algeria, as the diplomatic crisis with that country had “significantly” worried Consell.
The concern stems not only from the importance of this market for exports, but also from the fact that, according to the same sources, it has placed “Valencia companies on lower conditions compared to other international competitors in this unexpected situation”.