THE Generality Valenciana asks the Spanish government direct help at a loss familiesbusinesses and SMEs or loans that have no cost for the victims of the flood caused by DANA because the activated ICO funds must be returned with interest determined by the banks.
The spokesperson and Minister of Finance, Ruth Merinos indicated that “the funds ICO They will cover the bank that created them and not the individuals, SMEs and businesses that were affected by the floods” and that “what the Valencians need is help and not to increase their debts “.
He explained that the ICO guarantee line announced this week by the central government does not constitute direct aid to victims but rather a advance help and compensation which correspond to them, and access to these loans will entail an additional cost for the people concerned.
With this financial instrument, equipped with 5 billion euros, the Government will provide the State guarantee for loans granted by financial entities to the persons concerned as an advance on the aid and compensation they are to receive from the Insurance Compensation Consortium, this amount “does not therefore represent direct aid to the victims”, but a guarantee solely intended to facilitate access to credit through the participating financial entities, which are those which provide liquidity”, underlined Merino.
The advances and credits to which they are linked must be returned by the persons concerned with the corresponding interest. He guys of interest applied to these operations is set by the borrowing financial entities themselves without the ICO establishing no limitations.
In addition to the guarantees granted for advance aid and compensation loans, the ICO envisages a line of guarantees to finance investments or working capital and in these cases, financial entities could ask the holders of these operations for guarantees additional to those provided by. the state.
