This week sees the deployment of the loans that the Government has approved through a new line of ICO guarantees aimed at companies and individuals affected by the DANA. A line of guarantees endowed with 5,000 million euros. The Official Credit Institute (ICO) has explained that the banks that have signed up to this line of ICO-DANA guarantees already have the capacity to grant this financing and estimates that 32,000 companies will be able to benefit from it. Within this plan, a first tranche of 1,000 million euros has already been approved by the Council of Ministers, which will be progressively increased to a total of 5,000 million euros. Within this aid, it will be possible to advance payment of compensation to be paid by the Insurance Compensation Consortium, which will allow beneficiaries to have immediate access to liquidity.
The new ICO-DANA financing is divided into three lines. The first two anticipate the aid from public administrations and insurance compensation for those affected, whether individuals, self-employed or companies, even if the official loss assessment has not yet been carried out. In these two lines, the amount will be estimated, based on the conditions of the policies and the losses suffered.
The third ICO-DANA line is aimed at affected companies whose main activity is in the affected areas or whose means of transport have been damaged while carrying out their activity in one of the affected localities. The aim is to provide them with liquidity and enable them to maintain their economic activity. The amount of these loans will be set in accordance with the damage suffered and the economic capacity of each company, with personalised conditions in each case.
It is estimated that insured losses will exceed 1 billion euros, making this the costliest natural disaster in the history of Spain. The affected municipalities are home to more than 55,000 companies, many of which have suffered damage of all kinds: affected facilities, loss of stock and machinery, cut accesses, etc. In order to deal with the economic effects of the DANA on the business fabric, financial support levers have already been put in place and are reaching the market to boost recovery. The Kaizen Consulting team is permanently monitoring the market to advise and manage all available options so that companies can obtain immediate liquidity.
At Kaizen Consulting we are specialists in advising on financing for companies and we have extensive experience in the management of ICO credits. If you have any doubts about ICO-DANA guarantees, contact us: we will analyse your case, advising you on the best options for your business.
Moratorium on loans for those affected
Likewise, companies in the municipalities affected by the DANA whose turnover is less than 6 million euros will be able to take advantage of a moratorium on their mortgage and non-mortgage loans. This measure is also extended to families.
SMEs with a turnover of up to 6 million euros will be able to benefit from this moratorium of 3 months on the payment of interest and capital on their loan and an additional 9 months on the payment of the capital. It is estimated that 30,000 companies could benefit from this moratorium.
