The Official Credit Institute (ICO), the Spanish Stock Exchange and the Fixed Income Markets, the Spanish Redemption Company (Cersa) have 20 days to launch a 24.5 billion euro loan.

The decision of the Council of Ministers reinforces the need to use funding obtained from companies benefiting from guarantees to meet liquidity needs such as bill management, payment of salaries or suppliers, circulating need or maturity of financial and tax obligations, and cannot be used to distribute dividends.

To date, 40 billion euros have been made available to companies and the self-employed.

This guarantee can be requested until September 30. Once the gap is enabled, more than 60% of the 100 billion euros in the company financing program will be consumed. This line is managed by the IOC in collaboration with financial institutions. These include the cost of the guarantee, which ranges from 20 to 120 points.

The government has also set up a line of 4 billion euros for loans through a system of financing based on alternative fixed income market (MARF) debt, which will be managed in collaboration with the Spanish Stock Exchange and Markets (BME). One of the necessary conditions for obtaining the ICO's guarantees in MARF is to prevent companies from having their registered office in Spain, from reaching companies whose tax headquarters are in tax havens or from using the funds to distribute dividends.

As of May 6, nearly 300,000 guarantees have been applied for, mostly among the self-employed and small businesses.

Source of information: expansion.com