The idea that the Government manages to apply deductions to loans guaranteed by the Official Credit Institute (ICO) has not sat at all well in the banking sector, much less after considering that it is the entities themselves that would have to assume part of these deductions .
The sector has begun to show its I am suspicious of this measure within the aid plan prepared by the Executive, and even the CEOE business association itself, always in favor of everything that implies avoiding a business solvency crisis, has hinted that focusing aid on companies that benefited from ICOs last year can create a unfair situation compared to others who did not resort to the measure, but now also need help.
“You have to remember that ICOs only involve 20% of the credit in the sector“, explained the vice president of the CEOE, Íñigo Fernández de Mesa, during the presentation of the report ‘The management of bank delinquencies in the coronavirus crisis’ by the Foundation for Financial Studies.
In his opinion, forgiving a company debt for having an ICO loan can put another company with another type of credit in an unfair situation. And he warns: “It may be a call to breach financial commitmentsFor this reason, he insists on his message that the best formula for the Government to explore is that of direct aid to companies.
The author of the report, the former general director of the FROB Antonio Carrascosa Morales, says in the same vein, who advocates “not penalizing” the most forward-thinking companies. “There is talk of possible condocnaciones of credits guaranteed by the ICO and a fundamental drawback is that discriminates against companies that are less indebted and that they have been able to make an effort to increase their own resources to face the crisis and now they would be penalized, “he explains.
The banking sector has also been in favor of direct aid for some time. During his participation in the meeting, the president of the Spanish Banking Association (AEB), José María Roldán, made it clear that “we cannot undress a saint to dress another”, in reference to those possible removals that the bank would have to assume. “We have to preserve the strength of the banking sector, because we are going to need it in the economic recovery, “he insists.
Capacity until aid arrives
Roldán has also defended the need for direct aid, following the step that other European countries have marked. However, and also in reference to debt relief, it considers that the extension of grace periods and repayment of ICO loans allow the process to be carried out “slowly but surely”. Something that the CEOE does not agree on, who have labeled the implementation of these aid as “urgent” which, as the Minister of Economy, Nadia Calviño, are expected to be presented in March.
The bank employers also emphasize that it is necessary maintain healthy competition among equals and not to treat companies in the same sector unequally depending on whether they have one liquidity position or another. “It must be ensured that the aid is not pure and simple compensation measures, but rather that it supports a true economic reactivation in the private sector,” he added.
In relation to the potential increase in bank delinquencies due to the liquidity aids launched by the Government, Roldán has not been concerned and has assured that it is part of the usual management of banks. “We will do the usual, manage arrears proactively to minimize customer problems and the impact on the bank balance,” he added.
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