Valencia, Dec 6 (EFE).- The Valencian Institute of Finance (IVF) has activated “exceptional” tools by type, deadline and treatment method to help companies and self-employed workers affected by the October 29 dana, faced with a “exceptional situation” that requires solutions of this type.
This is what the general director of FIV, Enrique Montes, explained to EFE, who stated that this institution is taking on the role that corresponds to a public financial institution to integrate traditional financing in this situation of “urgent need for capital and financing ” .
He indicated that, within the competences of this body – direct help is the duty of other departments -, reflection is being made on what financial instruments coudl be created to usefully help companies in these moments of destruction of production capacity and physical capital .
It was decided to opt for zero-interest instruments, with a bonus assumed by the generalitat, with extended deadlines and deficiencies so that companies can focus on reconstruction without having to face the needs of debt repayment or interest.
montes specified that, with these premises, a loan line was created managed directly by FIV and another by Afín SGR with the coordination of FIV and the contribution of resources from the Generalitat to reduce the financial cost of these financing lines. which will mean a total liquidity of 350 million euros.
These are “truly remarkable” endowments, said Montes, specifying that historically in vitro fertilization ”had never mobilized this volume of resources”.
An FIV line was thus activated,equipped with 200 million euros,made up of subsidized loans at zero interest,with a repayment term of up to 10 years – no payment is expected in the first three years – and which will be financed up to 100%. % of projects, unlike 80% of ordinary lines.
Furthermore, he indicated that the internal protocols provide for shortened procedures for carrying out these operations, which will involve loans between 200,000 and 3 million euros, so that the resolution of the procedures is as rapid as possible.
montes underlined that during the pandemic the FIV increased the subsidized lines, which were very useful, but even then zero interest lines were not proposed, as is done now, as then the problem was liquidity and now it is indeed the replacement of the goods.
This line is already in force, after being published this week in the Official Journal of the Generalitat valenciana, and many applications are received by the FIV, whose director believes that the first operations will begin shortly and will allow financing more than 200 companies.
as regards the SGR line, complementary to the FIV one, Montes specified that it focuses on self-employed workers and interested SMEs, who will be able to access loans of between 25,000 and one million euros, in operations of up to 10 years – with a maximum of 3 deficiencies -, also subsidized at zero interest.
The difference with the previous line is that it is indeed carried out with financing from financial institutions: the SGR provides the guarantee for operations that the banks finance with these conditions, and the Generalitat subsidizes both the cost of the SGR guarantee and the cost of the financing of the banks that they market these loans.
This line, equipped with 150 million euros, will be approved in the next few days and it is indeed expected that around 1,100 or 1,200 companies will be able to be financed with it, Montes indicated, specifying that both lines can be requested until the funds are fatigued. resources.
The director specified that from the first moment after the damage they contacted current IVF clients, 700 in total, to offer them a one-year moratorium in submission of the Royal Decree Law approved by the Spanish government.
The difference is that they have also extended this measure to Valencian companies that have a turnover of more than 6 million euros, explained Montes, underlining that they have received more than 80 requests, which have already been practically resolved. EFE
What specific measures are being implemented to support tourism and hospitality businesses affected by the recent dana in Valencia?
Interview: Addressing the Needs of Affected Businesses Following the Dana in Valencia
Editor (Time.news): Good day, everyone, and welcome to this special segment where we delve into pressing financial issues shaping our communities.today, we have Enrique Montes, the General Director of the Valencian Institute of Finance (IVF). Enrique, thank you for joining us.
Enrique Montes: Thank you for having me. It’s essential to discuss the current situation and the measures we’re implementing.
Editor: Let’s get right into it.The recent natural disaster on October 29 has severely impacted businesses and self-employed individuals in Valencia. How is the IVF stepping up to support those affected?
Enrique: Absolutely. The recent dana created an extraordinary scenario that requires immediate responses. We’ve activated a series of exceptional tools specifically tailored for the current needs of companies and freelancers. This includes adjustments in our loan types, deadlines, and the methods of assistance we provide.
Editor: Can you elaborate on these tools and how they differ from the standard support measures you usually offer?
Enrique: Certainly. Normally, our financing options have set parameters, but in response to this crisis, we’ve introduced more flexible conditions. As an example, we are allowing longer repayment deadlines and more accessible application processes. Our goal is to ensure that those in urgent need of capital can receive it without the usual bureaucratic delays.
Editor: That sounds quite promising. How do you assess the urgency of the situation when deciding on these measures?
Enrique: We constantly evaluate the on-ground realities through direct interaction with affected businesses and industry stakeholders. We understand that many entrepreneurs are facing important cash flow issues and an immediate need for financial empowerment. Our role as a public financial institution is to act swiftly without compromising our values of support and accountability.
Editor: It’s commendable to see such a proactive approach. Are there specific sectors that you’ve identified as being more affected than others,and how are you planning to assist them?
Enrique: Yes,certain sectors such as tourism,hospitality,and local retail have seen devastating impacts. We are targeting our assistance programs towards these sectors by providing tailored grants and low-interest loans designed to help them rebuild. We’re also actively collaborating with local buisness associations to ensure we reach those who need assistance the most.
Editor: What message would you like to convey to the self-employed and business owners who may still be unaware of the support available?
Enrique: I’d encourage every affected individual to reach out to us, either via our website or directly through our offices. We’re here to listen, assess, and provide the necessary support. no one should navigate this situation alone; we are committed to helping our community recover and thrive once again.
Editor: Thank you, Enrique. It’s vital that our viewers understand the resources available to them in these challenging times. Do you anticipate any long-term changes to IVF’s financing programs as a result of this experience?
Enrique: Yes, absolutely. This experience has highlighted the need for greater flexibility in financial support, especially in crisis situations. We are considering making some of these exceptional measures a permanent part of our financing framework, so we can better serve our constituents in both the immediate and long term.
Editor: It’s great to hear that you’re looking at the bigger picture. Thank you for sharing these insights, Enrique. As the situation evolves, we look forward to seeing how the community works together to rebuild.
Enrique: Thank you for having me, and for shining a light on these critical issues. We’re all in this together, and together, we will emerge stronger.
Editor: And thank you to our viewers for tuning in. Stay informed, stay engaged, and stay safe. Untill next time.
