The Valencian government announced this Thursday that it would grant 350 million euros in zero-interest loans to support SMEs and the self-employed allocated by DANA, “through two new subsidized financial instruments”.
The Minister of Finance and the Economy, Ruth Merinosstressed that these new lines could be developed thanks to a direct contribution from the Generalitat of 65 million euros“amount which will be used to cover the interest rate which would apply to these operations”.
The head of the Treasury explained the financial response plan of the Generalitat for those affected by the floods, when presenting the new financial instruments intended to support the self-employed and businesses.
During the event she was accompanied by the general director of the Institut Valencià de Finances (IVF), Enrique Montesand the general director of Afín SGR, Jose Maria Badia.
In her speech, Ruth Merino spoke of the profound impact of the disaster on the productive fabric, with approximately 60,000 companies concernedand indicated that IVF is called upon to play an “essential role” in all the measures that the Generalitat deploys to advance reconstruction.
In addition to the new zero-rate liquidity lines presented this Thursday, the Minister of Finance highlighted the more than 400 million euros approved by the Generalitat in direct aid that is already reaching the victims.
Two financial instruments
The plan presented is structured around two differentiated financial instruments: a line of subsidized IVF financing intended for businesses and equipped with 200 million euros; and a line also subsidized by the Generalitat which will launch Associated SGRby which liquidity will be injected to the self-employed and SMEs affected by the amount of 150 million.
Through the DANA IVF line Subsidized loans will be offered for amounts between 200,000 and 3,000,000 euros, intended to finance new investments and inventory replenishment.
The Minister of Finance, Ruth Merino, explains the Generalitat’s financial response plan for SMEs and self-employed people affected by the floods. EE
Thus, operations can be formalized for a maximum duration of ten years and with up to three grace periods – period during which loan installments are not paid – for investment operations; and up to four years and with up to a grace period for operations of stock replenishment.
As a new feature, the amount of financing can reach up to 100% of the investment to be made. In ordinary IVF operations, the amounts cannot exceed 80% of the investment.
In addition, this body has designed for this line a special abbreviated analysis procedure for operations of up to 2 million euros, which will facilitate the processing of these credits and guarantee that liquidity reaches people as quickly as possible. concerned.
On the other hand, Afín SGR will launch a financing line also at zero cost, which will complement the IVF DANA line.
Presentation of the new financial instruments of the Generalitat for SMEs and self-employed workers affected by DANA. AND
This new financial instrument, subsidized thanks to the provision of funds from the Generalitat, is aimed at self-employed workers and SMEs, who will be offered loans of an amount between 25,000 and 1,000,000 euroswith conditions and deadlines similar to those offered in the IVF range.
It should be noted that loans from the line launched by Afín SGR could be requested via the bank branch network who have a signed agreement with this entity (more than 90% of offices present in the Valencian Community) or directly through its virtual office.
The Minister of Finance and the Economy stressed that these are two financial instruments which complement each other and have the same objective: “promote economic recovery and inject the necessary liquidity to deal with the exceptional situation we are going through,” concluded Merino.
