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European Funds FAQs

How will the EU funds for the restructuring of ICO loans be implemented?

On 12 April, the Government approved a series of measures to help in restructuring debt incurred in the form of ICO-backed loans granted during the COVID-19 pandemic.

These measures are part of a package of direct aid to SMEs and self-employed professionals totalling 11,000 million euros, of which 3,000 million euros will be used to finance the restructuring of the financial debt from these ICO loans.

How can we restructure the financial debt of the ICO-backed loans granted during the pandemic?

All government-backed loans may be treated in three ways in restructuring processes of viable companies with temporary problems agreed with financial institutions.

  • Extension of the due date: At the first level, the maturity of the loans can be extended, in addition to the extension approved last November.
  • The existing loans can be converted into participatory loans: second, these loans could be converted into participatory loans, while remaining government-backed.
  • Direct transfers to self-employed professionals and SMEs: third, direct transfers to self-employed professionals and SMEs would be allowed to reduce the guaranteed financing incurred during the pandemic (this would be exceptional and a last resort).

How will these measures be implemented?

A Code of Good Practices will be approved to implement these measures, and so that the financial sector and other organisations can take part in supporting these companies.

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