Sat. Apr 4th, 2020

The government ignores the companies and discards the tax exemption



The government yesterday activated part of one of the star measurements financially that he had announced a week ago to try to save many companies from bankruptcy and maintain the job. This is the first tranche of guarantees for bank loans worth up to $ 20 billion, expandable up to 100,000 million.

Several business organizations consider this measure insufficient in the current context of crisis. Treball Promotion, the employer that presides Josep Sánchez LlibreHe stressed that “no initiative has been taken to suspend tax assessments and Social Security quotas.” “All economic sectors of industry and services have mobilized in Catalonia in the last 48 hours to claim the Executive of Pedro Sánchez “The suspension of tax declarations and settlements as an extraordinary measure”. The moratorium 30,000 euros in the payment of tax debts for up to six months, with a three-month grace period in the payment of interest, approved the day the state of alarm was decreed, Foment del Treball considers it insufficient because that day “the intensity was not foreseen that the health crisis was going to have on economic activity ”. Along the same lines, the National Federation of Self-Employed Associations (ATA), which has asked the Government to “create no further confusion in the freelancers”And to suspend the“ for everyone ”quota, since many self-employed workers have closed their activity or suffered a 75% drop in sales. The General Council of Economists (CGE) also showed its “great disappointment” at the “lack of force” of the economic measures announced by the government.




The characteristics of the credits will be determined by each bank and the interest rates will be those of the market, but with guarantee

For her part, the Minister of Finance and government spokesperson, María Jesús Montero, explained at the press conference after the Council of Ministers that with public guarantees of up to 20,000 euros, a “liquidity system is activated to preserve productive activity and the job”. SMEs and freelancers, to whom guarantees for 10,000 million have been reserved, will be able to count on their new credits or renewals with a public guarantee of 80%. Large companies are guaranteed 70% of new financing granted with a public guarantee and 60% in renovation operations.

The negotiation of the conditions of these public guarantees are in line with that established in Germany (a maximum of 80% for SMEs) and the United Kingdom (75%).

Companies have no limit on the amount they can request and the financial conditions will be set by each bank. Of course, the new line of guarantees will be managed through the Official Credit Institute
(ICO).

Companies and self-employed workers of any size and sector who are experiencing financing problems and have to pay wages, bills, working capital needs or maturities of financial and tax obligations will be able to take advantage of these lines of financing. The only exception is companies that were delinquent at the end of 2019 or have a bankruptcy procedure open before March 17 of this year. These guarantees avail themselves of the community regulations approved last week. If the credits granted are less than 1.5 million, they will be regulated by the European aid regulations minimis . And those with the largest amounts will be included in the temporary framework of State aid from the European Commission. Now there is no provision of funds by the Executive, but in the event that in the future there were non-payments by companies, it would be computed as a deficit of the State.



The banking employers, AEB and Ceca, applauded the measure because in practice it involves reactivating their business with a kind of parachute; But economists already point out that for large companies, such as airlines, that they will be without income for a while, these guarantees of 60% to renew credits are insufficient.





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