The Government starts up the Sustainable Economy Fund with an allocation of EUR 20,000m for 2010-2011

• The 2010-2011 Sustainable Economy Fund breaks down into four products: an investment capital fund to finance infrastructures and energy, a venture capital fund, a direct project co-finance programme between ICO and financial institutions and a second-floor facility.
• Target sectors for the financing of projects are the environment, knowledge and innovation and areas of social significance.
• Projects of up to €100m may be financed, with a repayment term of up to 30 years.
• At year-end 2009, ICO had processed 360,000 second-floor lending operations for €15,000m through its various facilities.

December 29 2009. This morning, the Government’s Delegate Commission for Economic Affairs (CDGAE) gave the go-ahead to the Sustainable Economy Fund, entailing an amount of €20,000m for 2010 and 2011. The fund is to be managed by Instituto de Crédito Oficial (ICO), which will provide €10,000m, and the rest will come from the private financial institutions which enter into the agreement of cooperation.

The Second Deputy Prime Minister and Minister of Economy and Finance, Elena Salgado, together with the Chairman of ICO, José María Ayala, gave details as to the instruments available and the sectors targeted for the financing of projects related to the sustainable economy.

The Sustainable Economy Fund consists in four products, through which up to 100% of investment projects, including VAT, may be financed:

• An investment capital fund to finance infrastructures and energy, with a maximum amount of up to €100m per customer and a maximum repayment term of 30 years. The allocation will be €1,000m.
• A venture capital fund, for a maximum amount of €15m and a repayment term of up to 12 years. The allocation will be €300m.
• A direct project co-finance programme between ICO and financial institutions, with financing of up to €100m and a repayment term of up to 30 years.
• A second-floor facility, of up to €2m for the self-employed and micro and small enterprises and up to €50m for medium and large enterprises. Repayment terms may be up to 20 years.

These two products (the second-floor facility and the direct co-finance programme) share a total allocation of € 8,700m.

In this facility, when applications come from the self-employed and enterprises with up to 50 employees, the interest rate will be eligible for an allowance of 0.35% (applicable to the ICO funds tranche).Private individuals may also access finance from this fund if they intend to use it for home improvements.

The sectors targeted for the financing of projects are the environment, knowledge and innovation and those falling within the social scope.

Accordingly, this fund may be drawn upon to finance fixed assets whose aim is, amongst others, the improvement of energy efficiency, water management, eco-innovation, waste treatment and management, sustainable mobility, renewable energies, the refurbishment of housing, districts and rural areas, health and biotechnology, energy and climate change, information and communication technologies, aeronautics and the air-space sector, care for the elderly, dependents and vulnerable groups.

ICO FINANCING FACILITIES 2009

At year-end 2009, ICO had granted 360,000 lending operations for an amount of €15,000m through the various second-floor loans it manages in conjunction with credit institutions.

Last year, the most popular facility among businessmen was the SME Facility for investment, with 76,230 lending operations totalling €5,168m, followed by the Liquidity Facilities for SME and medium-sized enterprises, where financing is shared between ICO and financial institutions. The institute and financial institutions contributed €4,552m each. The Housing and Tourism Renove Facilities surpassed €1,000m.

ICO Facilities: Year-end figures (at December 22nd 2009): 

FINANCIAL FACILITATOR

The Financial Facilitator has been in operation since December 21st last year. Its purpose is to improve access to credit for those self-employed workers and SME whose loan applications (up to €2m) had been turned down by financial institutions.
The Facilitator website is accessible from ICO’s own website (www.ico.es) and a freephone customer service is in place (900 567 777) for those wishing to make enquiries.

Moreover, an agreement of cooperation with the Higher Board of Chambers of Commerce is in the pipeline, whereby signatory Chambers of Commerce may participate and assist in the Financial Facilitator project.

As regards procedure, the applicant should complete the form available on the Facilitator website. The data he/she provides will be assessed by an IT programme to find out whether the application meets requirements, in which case it will be accepted for further examination and the applicant will be asked to provide documentary proof of his/her situation.
Subsequently, if the application receives a favourable appraisal, it will be forwarded to the credit institution selected by the applicant from among those that have entered into the agreement of cooperation with ICO. Once the chosen institution has accepted the application, it will get in touch with the self-employed worker, entrepreneur or businessperson so as to commence the appropriate procedure.