Approval of the Code of Good Practices for the renegotiation framework for clients with guaranteed financing

On May 13, 2021, the Agreement approving the Code of Good Practices was published in the BOE, detailing the renegotiation framework for clients with financing guaranteed by ICO, CESCE or CERSA, provided by Royal Decree -Law 5/2021 of March 12, on extraordinary measures to support business solvency in response to the COVID-19 pandemic. 

This agreement establishes the voluntary measures for financial entities that have channeled public guarantees or have benefited from public guarantees.  

The Code of Good Practices stipulates that the measures collected will be applied at the request of the debtor, who can request to take advantage of one or more measures, once or successively, specifically can request: 

1. Extension of the maturity term of the guarantees
2. Conversion of guaranteed financing into participating loans not convertible into equity
3. Reduction of the outstanding capital

We detail the measures, the eligibility criteria and the deadlines in the following document.