The ICF Group, together with Avalis de Catalunya, continues boosting credit to the Catalan economic fabric, especially in an environment characterised by the health crisis arising from COVID-19 and the lack of liquidity of the self-employed, companies and bodies. Between the outbreak of the pandemic and the end of June, the ICF Group / Avalis has approved 1,341 operations to fund self-employed workers, companies and bodies for a total amount of 502.2 million euros by way of several solutions launched to address COVID-19, as well as other loan facilities prior to the state of emergency.
In line with the composition of the Catalan business fabric, 94% of the operations approved have been granted to entrepreneurs and SMEs. Overall, the credit volume granted by the ICF Group since the state of emergency has enabled almost 52,000 jobs to be created and/or maintained.
In terms of sector distribution, industry, trade, tourism, transport, and culture have been the main recipients of credit enabled in the recent months' activity. As regards regional distribution, Barcelona and its area of influence host 65% of the formalised operations, followed by Lleida-Pirineus (11%), Tarragona-Terres de l'Ebre (8%), Central Catalonia (7%), and Girona (6%).
With the outbreak of COVID-19, through the ICF Group / Avalis, the Government of Catalonia made 1 billion euros in a facility of loans and guarantees available to the Catalan economic fabric, in order to cover working capital needs and safeguard jobs. Furthermore, the ICF supplemented this offer with other specific credit solutions for sectors severely impacted by the pandemic, as well as a facility fully funded by the European Union's European Regional Development Fund (ERDF).
The Chief Executive Officer of the ICF, Josep-Ramón Sanromà, stated that “the role of the ICF, as a public bank, is to supplement the offer of commercial banking and other public bodies to provide backing to the economic fabric in these times of particular hardship”. "Along these lines, our solutions provide direct liquidity to the self-employed, companies and entities in order to address this crisis," he stated.
More than 1.1 billion euros in loans and guarantees
The “ICF-Avalis liquiditat COVID-19” loans, which feature a 100% guarantee from Avalis de Catalunya, were launched in the first fortnight of April with the backing of the Government. This facility – intended for the self-employed and SMEs and allocated a sum of 300 million euros – has enabled a total of 865 operations for €151.6m to be approved up the end of June. A sum of €75.1 million of this volume, accounting for 358 applications, correspond to the ICF, while the rest have been processed through the various financial institutions adhering to the agreement.
In spite of entering operation at the beginning of May, the “ICF Crèdit COVID-19” facility of loans and guarantees already accounts for 130 operations for an amount of 125.1 million euros. Operations worth 238.9 million euros are also at an advanced study stage. The funding, up to 2.5 million euros, has an 80% guarantee from the Ministry of the Vice-presidency and of the Economy and Finance, within the time frame of State aid. These loans provide additional liquidity to commercial banking credit with the ICO (Official Credit Institute) guarantee.
In addition to these two facilities, in mid-May the ICF and the European Commission launched a new credit facility, “ICF Eurocrèdit COVID-19”, fully funded by the EU's European Regional Development Fund (ERDF), with an initial 70-million-euro allocation. This facility has enabled 15 companies to be funded for 9.5 million euros and upwards of 200 applications, that will allow the €70m target to be reached, are under analysis.
Sector-specific facilities for industries affected by COVID-19
At the beginning of the state of emergency, the ICF, together with the Ministry of Culture and Catalan Institute of Cultural Businesses (ICEC) created a new credit facility for cultural entities and businesses. A total of 69 operations have already been confirmed through this solution, for an amount of 6.4 million euros.
The ICF is currently working to enable other specific funding facilities for sectors that have been affected by this situation, such as sports organisations, companies in the field of research, food or the social economy, among others.
Customer-focused
A defining characteristic of public banking is its ability to adapt to suit the needs and situation of each company. "We are patient capital," explained Sanromà. "Now more than ever, companies that have loans in force with the ICF need to restructure their debt to address the situation. Along these lines, the ICF offers a grace period of up to 12/18 months to enable them to address this period with peace of mind”. As a result of COVID-19, the ICF has restructured 177 operations for an amount of 147.4 million euros.
In recent months, the Institute has also continued to offer other credit solutions that were already part of its portfolio. In particular, through the various loan facilities that remain active, 85 operations have been granted for 62.3 million euros.
To date, the ICF continues to boost credit to companies that need liquidity as a result of COVID-19. Meanwhile, it is working to craft new solutions to stimulate the reactivation of the economy and boost innovation, sustainability and growth.
About the ICF
The ICF is the public financial body of Catalonia. Its main goal is to promote financing among the business community of Catalonia, to contribute to the growth, innovation and sustainability of the Catalan economy. The ICF acts in support of the private sector, offering a wide range of credit solutions based around loans, securities and investment in venture capital. Since 2014 it has been a member of the European Association of Public Banks (EAPB), which brings together public banks and financial entities across Europe.
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