The Generalitat, through the Valencian Institute of Finance, will launch a new line of credits to make it easier for companies and freelancers to obtain liquidity and guarantee the operations of current before him cost increase that most businesses are suffering from the energy crisis. This has been announced by the Minister of Finance and the Economic Model, Arcadi Spainwhich has indicated that the total amount to be allocated to this initiative will be 170 million of euros.
The new line is actually a enlarged reprint of which last year was allocated to provide liquidity, especially to the restoration and tourism, whose success forced an increase from 50 to 150 million initial endowment. On this occasion, the IVF wanted to broaden the spectrum to all those activities that need this injection of extra liquidity, a decision that, according to regional officials, will especially benefit activities such as the manufacturing industry, transport, commerce or serviceswhich suffer greatly from the increase in the cost of their supplies.
“The purpose of the new call is to support companies in the face of the increase in energy and production costs, and to help them face the new economic challenges that we face after the pandemic and the war in Ukraine”, explained the Minister of Finance.
Conditions
In this way, the new Reactive line will include direct or non-refundable installment of up to 20% of the requested amount that the companies will not have to return. In addition, it incorporates a reduced interest of 1.5% at a fixed rate to prevent foreseeable rate hikes from harming business.
The operations will have a term of two-year grace period and a return period for working capital and investment operations that may be extended over a period of 10 years. However, as a novelty in this line, the beneficiary companies will also have the possibility of accessing financing in the form of ‘bullet loans’. In this option, the capital of the loan is repaid at the end of its useful life, which will be four years, so that during this time the company will be able to count on all the financing and return only the interest.
“The rate hike of interest or the end of the deficiencies of the ICOS that were approved in the framework of the COVID made it essential that from the Generalitat we adapt our lines to the needs of each company and each territory”, insisted Spain, which has indicated that this support will help guarantee the employment of these companies. The line was presented this Tuesday at a ceremony in the Port of Alicante, with the presence of the president of the Port Authority, Julián López, and the director of the IVF, Manuel Illueca.
71 million in the province of Alicante in 2022
In the first half of the year, the Valencian Institute of Finance (IVF) has granted 300 financing operations amounting to 221 million euros, of which 70.74 million, approximately 32% of the total, correspond to Alicante, according to Minister Arcadi Spain pointed out, who trusts that this figure will increase considerably with the new Reactive line.
On the other hand, Spain has also announced that the Generalitat is going to expand the campaign to promote its help lines, through Local Development Agents and in collaboration with the municipalities of the Community “to reach companies and businesses in municipalities smaller each time, as is already the case in Alicante, where currently all the regions have companies financed by the IVF”.
To date, promotion agreements have been signed with 51 municipalities throughout the Community and the objective of the Generalitat is to extend its collaboration “to all the small and medium-sized municipalities” of the autonomy.
–
–
