Information for novating signed operations
Novation to extend the maturity and/or grace periods of guaranteed operations
At BBVA, we want to help reduce the impact of the coronavirus on your business. If you are a self-employed worker or a company and you have an operation that was verified and guaranteed by the ICO before November 18, 2020 (date of publication in the Official State Gazette of RD-Law 34/2020), you can request a novation to extend the maturity and/or grace periods of operations guaranteed by the liquidity facility, or only the grace period for an investment facility.
To do this, you have to contact your BBVA adviser to request the novation, in accordance with the requirements that are detailed below.
Be informed that the application deadline is May 15, 2021, inclusive.
What is it?
- A maximum 3-year extension of the maturity period, up to a maximum of 8 years.
- The increase in the grace period by a maximum of 12 months, up to a maximum of 24 months
- The principal corresponding to payments in the grace period may be added to the last installment, apportioned among the remaining installments or repaid using a combination of both, depending on the agreement between the parties. If no agreement is reached, the principal for the outstanding payments during the grace period will be spread out over the remaining installments.
Who is eligible?
Self-employed customers, SMEs and companies with operations verified and guaranteed by the ICO that meet the following criteria:
- The guaranteed operations were signed prior to November 18, 2020 (date of publication in the Official State Gazette of Royal Decree/Law 34/2020).
- The guaranteed operation is not in default (unpaid more than 90 days) on the date the extension is signed. Any other operation between this debtor and the bank cannot be in default either.
- The company is not listed as being in default in CIRBE on the date the extension is signed.
- The Entity has not reported to the ICO any non-payment of the company's guaranteed operation on the date the contract extension is signed.
- The company is not subject to insolvency proceedings.
- The company must comply with the limits set out in EU laws on State Aid.
How are the grants requested?
The application is made through the usual BBVA adviser, who will answer any questions and specify how to fill out the necessary documentation. You can search for open branches in each locality.
See the ICO website for more information