The Official Credit Institute (ICO) has confirmed to banks that it plans to use them. Channeling 18,700 to 20,000 million euros of the approximately 40,000 million euro loan to European funds He said the government had appointed him to manage it. Financial sources point out that this was one of the messages he conveyed to them at their meeting on December 13, as reported by Prensa Ibérica’s El Periódico. The public bank will channel another 9,300 to 10,000 million through managers and venture capital funds, while the remaining around 10,000 million will be allocated to investment activities. Direct funding from the ICO itself (normally the largest) and bond purchase Issued by companies in regulated debt markets (such as MARF or AIAF), insofar as these issues are linked to projects. However, the numbers are not closed and can be modulated depending on demand.
With the launch of the ICO, the first step is taken to make it available to economic actors. 84,000 million loans Fund made available to Spain by the European Union within the scope of New Generation EU funds.
At their meeting on December 13, those in charge of the ICO, an organization affiliated with the Ministry of Economy, provided information to the country’s main banks and employers (AEB and CECA) to begin outlining the operations of these European loans and therefore the organizations’ operations. to be Prepare your computer systems being able to channel them. As they explained, the Government was trying to reach agreement before the end of the year on the agreements (“implementation agreements”) that the public bank would need to sign with the different competent ministries and Secretaries of State.
They continued in the first weeks of 2024 as follows: The Council of Ministers will approve the financial conditions Organizations will receive drafts of each line and then the contracts they will need to sign with the ICO to market their funding lines. In these contracts, the conditions and features of each of these lines are determined, but sources confirm that the ICO is already clarifying daily queries from organizations. activate programs as soon as possible.
five funds
Public bank will start the project ICO-Green Line (22 billion loans given to households and private and public companies for green investments), ICO Line Companies and Entrepreneurs (8,000 million will be allocated to finance business investments under favorable conditions, 1,000 million of which will be allocated to the tourism sector), Next Technology ICO Fund (4,000 million to facilitate the growth of technological startups), ‘Spanish AVS Center’ plan (1.5 billion for the audiovisual and video game sector) and a fund of 4.0 billion to increase the stock of social and affordable rental housing.
The resources that will be channeled through the bank will be applied through ICO brokerage lines and will be used for four of these funds (all except Fond-ICO Next Tech, a capital vehicle that will invest alongside managers and venture capital). source of money). The public institution will provide resources to European credit institutions, and the banks will carry out their transactions with their customers, To be able to finance up to 100% of the project. The cost of credit for organizations will depend on the interest rate of the debt issued by the European Union to provide resources, but as an indicator, it was stated at the meeting that the interest rate could be approximately 0.3 percentage points below. year Spanish Treasury issuances.
Financial institutions may request funds from the ICO every two weeks, as is usual practice on mediation lines. Credits compatible with other subsidies As long as the customer does not finance the same concepts for the same project that are already covered by that subsidy. As determined by community regulations and as is the ICO’s usual practice, “sampling audits” will be carried out and “on-site” visits may be made to customers who must have previously consented to receive them.
Housing warranty
At the meeting, banks conveyed their request to the ICO and the Ministry of Economy through the Treasury. Ministry of Housing guarantees 50 percent of loans to real estate developers they are taking resources down the line to build social and affordable rental housing. The industry demand is due to the fact that such loans to promoters require significant capital consumption in compliance with financial regulations. According to banking sources, the Government has committed to look into the matter.
ICO representatives confirmed that projects wishing to benefit from the ICO Green Line must include activities in the 64 areas foreseen in the Recovery and Resilience Regulation and with a climate coefficient of 40% or 100%. For projects receiving less than €10 million in financing (currently 99% of financing provided by banks via ICO), and “List of positive activities” is being finalized with the European CommissionThe client’s self-evaluation will be sufficient. Where the loan amount is larger, an external company will need to verify its involvement in the listed activities.