ICO improves the conditions of the 2019 ICO facilities to adapt to the financing needs of companies, SMEs and the self-employed
- Business activities and investments are financed over all terms and processing is simplified
The State Secretariat for Economy and Business Support, Ana de la Cueva, presided over the signing of the collaboration agreements for the 2019 ICO facilities between the chairman of Instituto de Crédito Oficial (ICO), José Carlos García de Quevedo, and the representatives of the main financial institutions.
The ten most active credit institutions in granting ICO loans last year took part in this event: Bankia, Bankinter, Abanca, Banco Sabadell, BBVA, Caixabank, Santander, Unicaja, Caja Rural de Teruel and Ibercaja.
ICO's facilities finance the activities of the self-employed, SMEs, companies and entrepreneurs both in Spain (ICO Companies and Entrepreneurs Facility and ICO Commercial Credit Facility) and abroad (ICO International Facility, ICO Exporters Facility and ICO International Channel Facility).
This past year the facilities improved conditions to adapt more efficiently to the financing needs of companies:
- The 2019 ICO facilities finance business activities - both investment and liquidity - over any term between 1 and 20 years.
- The customer's grace periods are extended for transactions formalised for a term greater than 10 years, offering the option of a three-year grace period on the capital. This allows companies to better adapt financing terms to their business and expansion plans.
- Measures are implemented to simplify the processing, procedures and management of transactions.
- With regard to the control and verification processes of the ICO facilities, improvements have been introduced and models aligned with European counterparts have been developed.
- Specialised facilities have been maintained, including the ICO SGR/SAECA Guarantee Facility, which complete the product range.
With all these improvements, ICO makes the characteristics of its facilities more flexible and adapts them to the financial needs of companies and the self-employed in order to boost their growth, activity and investments in Spain, as well as their internationalisation in third markets.
2018 ICO facilities
ICO facilities financed more than 41,440 transactions for an approximate amount of 2.5 billion euros in 2018. As financial institutions have started to offer credit again and companies enjoy better liquidity, ICO has started to focus its strategy on offering added value to business financing, supporting activities that sustain economic growth, job creation and the positioning of companies abroad.
ICO facilities stand out for their great spread. Of the total financing and transactions carried out in 2018, more than 1.6 billion euros was distributed over credit agreements entered into by companies with fewer than 50 workers. The number of loans granted to companies with fewer than 10 workers represents 65% of total transactions. If we also take into account companies with up to 50 employees, the percentage rises to more than 90%.
ICO second-floor facilities are also useful for companies with between 50 and 250 employees. These types of companies formalised 10% of the transactions carried out in 2018, for an amount greater than 700 million euros.
By region, the Autonomous Communities most active in ICO loans were Catalonia, where 18% of the total was distributed, followed by Galicia (12%), Andalusia (10.4%), Valencia (10.3%) and Madrid (9.3%).
It should be noted that 41.5% of the total loans available in 2018 correspond to the facilities designed to promote both the export activity of companies and their internationalisation.