ICO Ukraine Guarantee Facility
BBVA wants to help you reduce the impact of the Ukrainian War on your business
If you have a company or are self-employed, you can benefit from the financing we offer, which is backed by the State guarantee line managed by the ICO according to RDL 6/2022 and the Council of Ministers Agreement of 5 December 2023.
What can the grants be used for?
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The financing is intended to cover liquidity and investment needs (current expenses, working capital and investments).
Characteristics of the ICO Ukraine Facility
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Available for self-employed workers and companies with registered office in Spain that are affected by the economic and social effects of Russia's attack on Ukraine, provided that they are not in arrears with any financial institution or are undergoing insolvency, and do not have Covid ICO Facility guarantees executed for non-payment or have requested debt relief under the Code of Good Practice in relation to these Covid ICO Facilities.
Term and % guarantee according to Temporary Ukraine Framework:
- Temporary Ukraine Framework 2.1 (transactions with total guarantees < €2,250,000, or €335,000 for companies in the fishing or aquaculture sector, or €280,000 for companies active in the primary sector): maximum 10 years. Guarantees may reach 80% of the value of financing operations.
Minimum 12 months grace period for initial capital at the customer's request.
Restrictions:
- These must be new operations, and cannot be requested for renewals or restructurings.
- This facility is not compatible with other grants you have requested for the same investment project.
Facility available until June 1, 2024, or until the €10 billion allocated to the facility is exhausted.
Financing conditions subject to the eligibility criteria required by the ICO, subject to approval by BBVA, S.A. and to the availability of funds in the guarantee facility.
How to request the ICO Ukraine Facility
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How are the grants requested?
The application can be made through the usual BBVA adviser, who will answer any questions and specify how to send in the necessary documentation.
You can also search for open branches in each locality. Inform them that this request cannot be processed for a few days, due to computer processes.
Necessary documentation
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In order to comply with the documentation requirements established by the Instituto de Crédito Oficial for the self-employed and SMEs, the following documents are necessary to process the financing under the Guarantee Facility set forth in Royal Decree-Law 6/2022 and in the Agreement of the Council of Ministers of December 5, 2023.
- Responsible Declaration of Aid subject to the "Temporary Framework regarding state aid measures aimed at supporting the economy following Russia's attack on Ukraine."
- Responsible Declaration on Compliance with certain conditions for the application for the guarantee via the ICO Ukraine Guarantee Facility, which includes:
a) being affected by the crisis in Ukraine;
b) not be subject to sanctions that the European Union has been able to establish as a result of Russia's attack on Ukraine, and that they are not subject to any prohibition on obtaining the status of beneficiary set out in article 13,2 of the General Subsidies Act 38/2003, of 17 November;
c) is not in insolvency or subject to the circumstances set forth in article 2.4 of Royal Legislative Decree 1/2020 of 5 May, approving the revised text of the Insolvency Act or the regulation replacing it and
d) neither the parent company nor the group companies are domiciled in a tax haven or territory that is not a tax partner.
- Authorization signed by the customer so that ICO and the bank can view the customer's CIRBE details.
- ECOT certificate from the Tax Agency or Regional Tax Agencies that the party is up to date with tax obligations.
- A certificate from the Social Security General Treasury of being up to date with Social Security payments.
- A certificate from the Social Security General Treasury of registration and activities.
- Express consent of the customer to confirm data with the Tax Agency or the Regional Tax Authorities.
- Express consent of the customer to confirm data with the Social Security General Treasury.
- Confirmation of compliance with the average supplier payment times established in Spanish Law 3/2004 of December 29, establishing measures to combat late payment in commercial transactions. or, if it is an audited company, the auditor's certificate stating that the average supplier payment period is compliant.
- Responsible Declaration of Aid subject to the "Temporary Framework regarding state aid measures aimed at supporting the economy following Russia's attack on Ukraine."
Extensions
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By Resolution of December 7, 2023, of the State Secretariat for Economy and Business Support, which publishes the Agreement of the Council of Ministers of December 5, 2023, the ICO has been authorized to extend financing operations under the ICO Ukraine line for up to 8 (for transactions under section 2.2 of the Temporary Ukraine Framework) or 10 years (for transactions under section 2.1 of the Temporary Ukraine Framework).
Please note that this extension requires the authorization of the bank, since it is subject to internal procedures and granting policies, and policies on risks, meaning the Bank may deny said request. For more information, please consult the notice board or talk to your branch. The request can be formalized in the next few days.