Santander encourages its staff to expand ICOs to around 100,000 clients

Santanderencouraged its managers in Spain on Wednesday, in a telematic meeting, to devote themselves in the coming days to the management of the extension of the repayment terms and lack of loans guaranteed by the ICO that your clients requested last year.

In that meeting, Octavio Ramirez, director of companies of Santander Spain, underlined the advisability of the bank to convince most of its clients with ICO loans to sign a deferral of the maturity period.

For the entity, having the management of these loans on your balance sheet for more years is positive from an accounting point of view, explained the executive of Santander, according to the sources consulted by this newspaper.

Santander’s intention is that the entire process of expanding the repayment of ICO loans is done through the internet

Santander was the bank that ICO loans managed among clients in the Spanish financial sector last year, and now it also wants to be the first to allow them to extend the repayment period and grace period, Ramírez explained at the meeting that took place one day before the group presented its results yearly.

The bank chaired by Ana Botín you plan to quote your clients from next February 15 for extend these deadlines and the lack of return of the loans given last year, allowing the entire process to be done digitally, without going through the office.

“For the granting of extensions and deficiencies of ICO loans, we are working on a model that is as automated as possible, which will be available in mid-February and for which the client will simply have to send their request through digital channels“Santander explained to this newspaper.” Meanwhile, we are implementing a tactical solution for those clients who are already requesting it (they can do it through their manager or office as usual), “he added.

Santander reached a 27% share in the distribution of ICO loans in 2020, higher than that of the market between companies (20%)

“We have defined a concrete strategy for ICO clients, in order to offer each one the best approach in a personalized way according to their profile “, they pointed out from the first Spanish bank, and pointed out that they have a specific proposal for the tourism and automobile sectors, which have specific ICO lines.

Last July, the Government extended until December 1, 2020, the line of guarantees from the Official Credit Institute (ICO) to support the liquidity of SMEs, freelancers and companies, endowed with 100,000 million euros, included in Royal Decree-Law 8/2020, of March 17, on extraordinary urgent measures to face the economic and social impact of covid-19.

In the middle of last November, the Minister council approved a new royal decree law that agreed to extend the term for granting guarantees for the two lines in operation until June 30, 2021, and the extension of the maximum term to return the credits in three years, up to maximum of eight years, and the grace period up to a maximum of 24 months.

The bank estimates that about 60% of its clients who requested an ICO loan will now be willing to extend the maturity period

The sources consulted by this newspaper estimate that about 100,000 clients, more than 60% of thewho signed one of these ICO loans with Santander to face the impact of the pandemic, will now be willing to extend the repayment terms, although that percentage could be much higher, due to the favorable conditions of the loans and the uncertainty generated by the current crisis.