Spain to strengthen support for company solvency soon

The Spanish government expects to prepare additional measures to support companies’ solvency soon, Economy Minister Nadia Calvino said on Tuesday.

“We can go one step further to support solvent companies, which are in trouble because of the pandemic,” she said in an interview with Cadena SER radio station.

Several sources told Reuters on Monday the government was aiming to outline in the coming weeks a set of measures to support companies, possibly including haircuts on state-backed loans as well as direct state aid to help smaller firms weather the COVID-19 pandemic.

“We are working with the Bank of Spain and the financial sector to figure out new specific measures through the ICO loan guarantees,” Calvino said.

The government has already extended grace periods and maturities, so helping companies significantly, she stressed.

One of the sources familiar with the matter told Reuters the aim was to have a new framework of direct aid and loan haircuts readied by March to alleviate a growing corporate debt burden.

via Reuters