The government began to move yesterday to banking the conditions of the public guarantee plan of up to 100,000 million euros that has been launched as crash plan against the economic crisis left by the coronavirus pandemic Covid-19.
Although the Executive already reported on Tuesday, when it released a first tranche of 20,000 million, that the cost of these guarantees for the entities it would oscillate between 20 and 120 basic points, yesterday, as this newspaper has verified, detailed to the sector the specific rate of each type of guarantee. For loans of up to 1.5 million euros, the rate will be the lowest, that is, up to 3,000 euros per guarantee.
From there, the cost of the guarantees for larger loans will fluctuate depending on the type of beneficiary and the duration of the loan. In the case of SMEs, for which the State will guarantee 80% of the risk of the financing, the cost for the banks will also be 0.2% in the case of loans of up to one year in duration; 0.3% (an invoice that starts from 4,500 euros) for those between one and three years old; and 0.8% (at least 12,000 euros) for those between three and five years old, which is the maximum period of duration foreseen for the guarantees.
In the case of larger companies, and always for loans of more than one million euros, the guarantee coverage will be 70% for new credit and 60% for renewals. The cost for the entities of the guarantees granted on new financing will be 0.3% in loans of up to one year; 0.6% in those from one to three years (9,000 euros starting) and 1.2% in those from three to five years (18,000 euros).
The cost of credits for customers will depend on the margin established by each entity from these thresholds. The guarantees will be available retroactively from March 18 and can be requested until September 30, with guaranteed financing being available to all companies that do not end 2019 in default or arrive in March in competition.
The State will not collect 1,200 million
Given the remuneration required from the financial sector for 100,000 million in public guarantees, theoretically, banks could pay 1,200 million to the State for guarantees if all financing were given at the maximum rate (1.2%). This, however, will not happen because at least 50% of the first tranche of 20,000 million is reserved for SMEs (maximum 0.8%).
In the absence of knowing how much the State enters for these guarantees, the truth is that its unprecedented deployment – the largest mobilization of democracy resources, as stressed by the Government – will have no public cost except in the case of those loans that incur in defaults , which will activate the guarantee.