The Official Credit Institute (ICO) plans to grant loans worth 14,000 million euros in 2015, 34.8% less than in 2014, due to the improvement of the financing conditions of the economy.
According to the ICO, with this objective of granting credits, the volume of financing of the public entity is adapted to its role in the credit market and to the new recovery conditions of the Spanish economy.
The Secretary of State for the Economy, Íñigo Fernández de Mesa, and the president of the Institute, Irene Garrido, presented on Monday the program of the ICO Lines for 2015 focused mainly on an impulse to finance activities in the foreign sector.
When the banks have had a worse behavior, the ICO has been able to impersonate them
The president of the organization has signed the financing lines for this year with the representatives of the ten most active financial institutions in the ICO loan concession in 2014: Banco Popular, Banco Santander, Banco Sabadell, BBVA, Bankia, La Caixa, Bankinter, Ibercaja, Bantierra, and Targobak.
Fernández de Mesa has highlighted the normalization of the credit market and the “counter-cyclical” role that the ICO has had during the crisis years when the private banking sector had problems in granting loans https://gadcapital.com/.
He has considered that when the banks “have had a worse behavior, the ICO has been able to supplant them” , reason why it has affirmed that as of 2015 this organism will dedicate itself more actively to finance projects of long-term investment and of greater added value, as well as in the field of guarantees.
He added that the financial sector will have more financing capacity, and highlighted the lower fragmentation of markets in Europe and the reduction of financing costs for SMEs in Spain compared to countries in the eurozone.
He stressed that the Spanish SME is financed 26 basis points less than the German and 150 basis points less than the Portuguese.
The Secretary of State for the Economy has stressed that 2015 stands out for the “banking normalization” thanks to the reforms undertaken in Spain and in Europe, which have helped to capitalize the system and have had a positive impact, resulting in the increase in new credit and in improving their conditions.
He recalled the growth of credit to households for eleven consecutive months and the increase for thirteen months of new loans to SMEs.
Last year, it financed almost 300,000 investment projects for self-employed workers and SMEs
On the other hand, the ICO closed 2014 with a volume of financing granted of 21,469 million euros, 55% more than the previous year, and financed almost 300,000 investment projects for self-employed workers and SMEs.
In addition, 51% of operations were less than 25,000 euros and 62% were granted to microenterprises of less than 10 employees.
In 2014, international credit activity accounted for 25% of the loans granted by the ICO.
The strengthening of risk capital will also be one of the strategic axes of this year through FOND-ICO Global, which aims to improve the non-bank financing of Spanish SMEs.
Fernandez de Mesa recalled that this year FOND-ICO Global will have two calls for 400 million each, in order to mobilize a total of 1.2 billion financing for new projects.
Two new funds will come to these two tenders, whose main objective will be to finance innovative projects in development phases.