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The European Commission has paid Spain a third tranche of 1,030 million euros of soft credit granted by the EU to finance the Records of Temporary Employment Regulation (ERTE) caused by the Covid-19 crisis. Our country is the second beneficiary -behind Italy- of the new background Sure to preserve employment in the context of the pandemic. So far it has received 11,000 million euros and in total it has awarded 21,300 million.
The first month of 2021 closed in Spain with 738,969 people in ERTE, which were extended last week until the end of May. This represents an increase of 35,625 people compared to the end of December, according to the latest data released this Tuesday.
Money from Sure – in the form of concessional loans – aims to help Member States cope with the sudden increases in public spending needed to slow job destruction. The funds can be used to defray the national measures adopted since last February 1 in the area of ERTE and aid to the self-employed.
???????? SURE will support short-term work plans and help protect employment and livelihoods in Spain with a total of € 21.3 billion.
Today Spain has received more than 1,000 million euros in loans under our SURE instrument.
Europe is with you.
– Ursula von der Leyen (@vonderleyen) February 2, 2021
In total, Brussels has disbursed this Tuesday a total of € 14 billion from the SURE fund to eight other Member States: Italy (4,450 million), Poland (4,280 million), Belgium (2,000 million), Greece (728 million), Latvia (72 million), Cyprus (229 million), Slovenia (913 million) and Hungary (304 million).
“Disbursements are coming regularly to our Member States, helping them financially to mitigate the impact of the coronavirus pandemic,” Commission Vice-President Ursula von der Leyen said in a statement.
“The pandemic continues to weigh on our economies And although we know that there is light at the end of this tunnel, we still don’t know how much longer it will take us to reach it. Therefore Sure and the European solidarity that it represents are so important, “says the Commissioner for Economic Affairs, the Italian Paolo Gentiloni.
Payments to Spain and the rest of the Member States occur after the fourth issue of social bonds worth € 14 billion made by the Community Executive on January 26 through Sure. The issue consisted of two bonds: one of 10,000 million that matures in June 2028; and another of 4,000 million, which expires in November 2050.
This highly credit rated instrument attracted great interest from investors, and the bonds were up to 12 times oversubscribed, resulting in favorable price conditions.
More concretely, the 7-year bond traded with a negative yield of -0.497%. This means that for every 105 euros that Member States receive, they return 100 euros when the bond expires. The 30-year bond traded in slightly positive territory, at 0.134%, which is an excellent result for this maturity, Brussels highlights. These prices are transmitted directly to the EU Member States.
The obligations that the EU issues through Sure have the social bonus tag, in order to inspire confidence in investors that the funds mobilized will serve a truly social purpose.
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