The Spanish government is guaranteeing €40 billion in new credit lines to underpin corporate investments in digitalization and in green technologies. In March, the government had announced that it would guarantee €100 billion in loans to companies in financial difficulties due to the Covid-19 pandemic.
The government is also creating a €10 billion fund to help strategic companies affected by the Covid-19 pandemic. The fund aims to provide “temporary public support” to non-financial companies hit by the pandemic, it said in a statement without giving names. The money could be distributed through profit participating loans or the acquisition of shares or bonds in the company concerned through the state-controlled group SEPI.
Since mid-March, the government has introduced measures to mitigate the impact of the pandemic and eased access to job retention schemes, which have been extended to the end of September. The companies that use a job support scheme cannot fire employees for six months after its termination.
The government also postponed tax payments and social security contributions for small and medium-sized companies and the self-employed. It also introduced financial aid for people who lost their jobs but are not entitled to unemployment allowances. Pedro Sanchez, the prime minster, indicated that a fiscal reform is inevitable to finance these measures, and anticipates a tax increase, especially for large companies.