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Covid Credit
31 March 2020
The Government has already notified the European Commission for new lines of credit with a package of seven billion euros
ECO Economia Online

The Government notified the European Commission this Monday to launch new lines of credit. At stake are seven billion euros that will be made available as needed, revealed the Minister of Economy. Trade and services, but also some industrial sectors will be the priority, he said.

This new set of credit lines is modeled on the three billion euro line that has already been announced, but which is not yet available at bank branches. This line has an associated cost of 3%, because companies will have to bear a spread of 1% to 1.5%, even though the interest rate is negative (normally six-month Euribor -0.3%), plus a mutual guarantee commission that can go up to 1%, values ​​to which is added a commission for the management of the 0.5% dossier that the bank can charge.

"We made a notification yesterday to the European Commission to be able to approve new lines of credit that the State will manage as needed," said Pedro Siza Vieira. "The notification we made was seven billion euros”, added the person in charge of the Economy portfolio.

But these lines "may not be launched all at once", warned the minister. In addition, "there are some areas in which it will be more important to move forward”, he acknowledged, giving as an example "the sector of commerce and services, very affected by the closure determined by the state of emergency decree and a set of industrial sectors to which it is necessary to give answer".

In the course of negotiations with the European Commission for the launch of this new package of measures, several sectors have already been listed: manufacture of machinery and equipment, metal mechanics, automobile and trailer production, manufacture of paper or wholesale of household goods.

"The important thing”, stressed Siza Vieira, is that companies are able to "go through the tunnel of these weeks” and then recover their activity. It is in this logic that the various measures that the Executive advanced are inscribed, be it the lay-off, the deferral of fiscal and Social Security responsibilities, the credit default or payment to suppliers. The Minister of Economy also revealed that, at the level of the entities dependent on his tutelage, they have already accelerated "the payment of almost 120 million euros to companies”.

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