The Government has approved a royal decree of measures that extends the maturities of ICO loans from five to eight years, three more than the five initially planned, in addition to extending the term for requesting the guarantees until June 30, 2021 and the grace period up to 24 months.
These measures are applicable to both the main line of financing of 100,000 million euros and the subsequent one of 40,000 million, which in both cases are extended until June 30, 2021.
In the press conference after the Council of Ministers, the Third Vice President of the Government and Minister of Economic Affairs and Digital Transformation, Nadia Calviño, explained what these measures to support business solvency and in tax matters consist of to deal with the ravages of COVID-19.
What it is about, Calviño explained, is to reinforce the “safety net” to preserve the productive fabric in the coming months. Taking advantage of these extensions depends in all cases on the will of the company, and in no case is it mandatory.
Among the conditions that the debtor must meet to benefit from it, it is worth noting that they cannot be in default or have communicated any breach of their guaranteed operations.
If the requirements are met, the State will extend the term of the guarantees, the processing of which should be as easy as possible without the financial institution granting the loan being able to condition it to the contracting of additional products or an increase in cost that is not justified.