Sánchez announces new ICO line of 20 billion euros for SMEs

2020/05/16 17:09:22 Written by Canarian Weekly Business

The Prime Minister, Pedro Sánchez, has announced a new line of the Official Credit (ICO) for 20 billion euros to support SMEs and self-employed affected by the stoppage of activity, as a result of the state of alarm to stop COVID-19.

At a press conference at the Palacio de la Moncloa, the president asked the financial sector to be "dynamic" so that the lines reach SMEs and the self-employed.

This third ICO line, for 20 billion, will be approved, predictably, by the Council of Ministers next Tuesday, and will raise the total financing provided by the public institute to 84.5 billion euros.

Of this figure, 80 billion is guaranteed to companies, 4 billion are guarantees for the issuance of promissory notes of non-financial companies that operate in the fixed income market provided they have their registered office in Spain, and the remaining 500 million are destined for the Company Spanish Counter-guarantee (Cersa).

The president has also defended the imposition of quarantine for those who come to Spain from other countries "out of prudence", because tourism needs security. "If we rush, we could put at risk the international credit that it has taken us decades to obtain," he said.

Sánchez has advocated a common solution for the EU as a whole in the field of tourism, to encourage the return of foreign tourists "under the absolute security" of health.

He has also said that 82% of the affiliates of the sector have some type of protection, either through compensation for cessation of activity or by temporary employment regulation files.

He stressed that "there is no conflict "between economic and health priorities, because" the only way for economic recovery is to overcome the pandemic."