The Council of Ministers extends the period for requesting ICO guarantees and modifies the Code of Good Practices

The Council of Ministers has agreed to extend the period of application for financing endorsed by the Official Credit Institute (ICO), CESCE or CERSA (endorsed financing), as well as to raise the economic thresholds related to refinancing the same, transferring said modifications to the Code of Good Practices. Said agreement has been published in the  BOE of December 1, 2021 .

This modification of the Code of Good Practices is adopted as a result of the changes introduced in the Temporary Framework for State Aid of the European Union and tries to match the temporary framework of guaranteed financing to other measures recently adopted to promote economic recovery, such as the extension of the “bankruptcy moratorium” or the temporary suspension of the cause of dissolution due to losses.

The entities initially adhering to the Code of Good Practices will have a period of one month to notify the General Secretariat of the Treasury and International Financing of their intention not to be bound by the modifications introduced and continue to be governed by the aforementioned Code in its original version.

The most relevant modifications introduced in the guaranteed financing and in the Code of Good Practices are detailed below, comparing it for greater ease with the previous situation.

Extension of the application period for the measures envisaged for the renegotiation and restructuring of the guaranteed financing

In the original wording contained in the Resolution of the Secretary of State and Economy and Support to the Company of May 12, 2021, the Code of Good Practices established different maximum periods of request, execution and maintenance of restructuring measures of the guaranteed financing .

The modification of the Code of Good Practices extends these deadlines by six months, without modifying or introducing additional restructuring measures (except for the possibility of requesting a second transfer (removal) in certain cases). Likewise, the extension of the expiration date of the operations affected by the volcanic eruption on the island of La Palma is facilitated, considerably reducing the eligibility conditions for the application of this measure. 

One of the restructuring measures expressly provided for in the Code of Good Practices regarding guaranteed financing is the possibility of extending its maximum maturity period. Said maximum term varies depending on certain economic thresholds, which have been modified with the new standard.