ICO lines: summary of the 100,000 million euros approved by the Government

The Council of Ministers at their meeting on June 16, 2020, has adopted an Agreement that instructs the ICO to initiate the fifth and last tranche of the line of guarantees approved by Royal Decree-Law 8/2020, of March 17 for an amount of 15,500 million euros. The beneficiaries of this new section are the following:

• Self-employed and SMEs: 7,500 million euros.
• Big enterprises: 5,000 million euros.
• Companies included within the CNAE of the tourism sector: 2,500 million euros.
• Financing in the purchase of motor vehicles for road transport for professional use: 500 million euros.
  
  

The procedures for its application will be the same as for the other four tranches guaranteed by the ICO, for an amount of 80,000 million euros, through the financial entities with which they operate.

The destination of the funds of the loans guaranteed by the ICO must be the following:

• Salary Payments.
• Vendor invoices pending settlement.
• Rentals of premises, offices and facilities.
• Supply costs.
• Capital Requirements.
• Other liquidity needs, including those derived from maturities of financial or tax obligation.
  
  

Not being able to be used for other destinations, with the exception of the section enabled for companies in the tourism sector and for the section intended for the purchase of motor vehicles.

In the following table, we show the summary of the lines of guarantees approved by the Government, amounting to 100,000 million euros with this new tranche:

For more information:

Nerea Pérez de Guzmán
Partner Restructuring Department