Banks will begin to grant loans to advance advances on the aid for DANA and insurance compensation for those affected by the catastrophe starting this Friday. This was announced by the president of the Official Credit Institute (ICO), Manuel Illueca, this Thursday during an appearance in Moncloa.
This system seeks to those affected can access liquidity to start recovering from the blow as soon as possible. “Without liquidity there is no reconstruction,” Illueca summarized in his speech. In this way, it will not be necessary to wait for the administrations to resolve the requests, something that can take longer than desirable.
Starting Friday, injured people, companies and self-employed workers can request a loan under advantageous conditions to advance aid or compensation that will have a public guarantee of up to 80% of what is requested. These are ‘soft’ loans in which There will be no monthly payment to pay, both in terms of interest and capitaluntil the applicant receives the help or compensation from the insurance that corresponds to them.
When the corresponding administration or the Insurance Compensation Consortium transfers the money, then the banks will proceed to settle the interest on the loan. Credit institutions They will not be able to apply opening or reimbursement fees for the loans they grant guaranteed by the ICO. This will not mean that the loans are free. Once the aid has been received, interest will have to be paid to the bank. However, since they are publicly guaranteed, the interest burden will be much lower than that of an ordinary loan.
To request advance payments of aid in this way, It will be enough for those affected to present a responsible declaration before the bank in which they prove that they reside or had a work contract in the affected areas and also the damages they have suffered. It will be enough for them to submit a request for public aid or a request for compensation from the insurance consortium for damaged property. The maximum amount that can be borrowed must be the same as the amount of aid requested.
With this system there is also a risk for applicants. It could happen that the administration decides not to grant you the aid or that it is of a lower amount than expected, as with insurance compensation. In those cases, The system designed by the ICO converts the requested advance into a loan which would have to be returned within a period of five years. Likewise, with more favorable conditions than those of ordinary credit.
In any case, it is important to remember that the public aid granted by the central government for housing or damaged belongings has its own advance payment system of 50% of the amount without the need to request a loan. These two systems are not incompatible, on the contrary, they are complementary.
“Today we will finish closing the issues still pending with the banking entities and From tomorrow the loans will be available to families and companies“Illueca explained in his speech to the media. In addition, the president of the ICO has indicated that the DANA loans that have already been requested may also benefit from the public guarantee system if they meet the conditions.
In total, the potential beneficiaries of the guarantee lines are some 32,000 companies, more than half a million people and 150,000 homes that have been harmed by DANA.
