The Council of Ministers has given the green light to the first tranche of 20,000 million euros in the line of public guarantees for loans to companies as part of the 100,000 million that it approved last week to combat the devastating economic effects of the coronavirus. The State will guarantee 80% of loans to self-employed workers and SMEs, for which 10,000 million of that first tranche has been reserved. For the rest of the companies, the guarantee will be 70% in new loans and 60% in renewals.
When the first 20,000 million are exhausted, additional sections up to 100,000 million will be activated “automatically”, said the Minister of Finance, María Jesús Montero.
The financing will serve to pay salaries, bills, working capital needs and financial and tax maturities, among other concepts.