Bankinter has extended loans to 12,250 companies and sole traders with ICO Line
The bank has provided 2.8 billion euros in liquidity mostly to SMEs in over five weeks.
Bankinter has financed 12,250 companies, SMEs and sole traders with loans backed by the Instituto de Crédito Oficial (Spanish Credit Institute or ‘ICO’). Since the ICO line was rolled out on 6 April, the bank has enhanced its teams’ operations and related processes to provide liquidity to companies, the Spanish economy’s key driver of employment.
In just over five weeks, Bankinter has processed 12,500 loans for 12,250 companies and sole traders (totalling over 2.8 billion euros) to help them with their finances.
Bankinter has used up around 65% of its instalment from the COVID-19 lines of credit set up by ICO. The daily rate at which new loans are granted is high.
Bankinter immediately adhered to the ICO line; however, it has also taken other measures within its shock plan against coronavirus to help mitigate its impact on businesses.
The bank announced last Monday that it will be offering ICO-secured loans within the third tranche of a state-backed credit facility. Accordingly, Bankinter was assigned 1.024 million euros in guarantees.
This amount will provide the bank with approximately 1.3 billion euros to fund transactions, since the guarantee can cover about 80% of each loan amount, depending on whether a borrowing business is an SME or not.
The ICO line will allow Bankinter to grant nearly 4.5 billion euros in loans to SMEs, other businesses and sole traders.
Furthermore, this week Bankinter created a new line of facilities that is also backed by ICO guarantees to aims to renew financing for SMEs, larger enterprises and sole traders.
Other measures it has announced include payment holidays on loans for certain customers, reverse factoring post-financing and increased limits on ‘multi-line’ financing, and pre-approved loans to be used for purposes other than paying taxes and social security.