The first tranche of guarantees amounting to 20 billion Euros was launched yesterday.

The first tranche of guarantees amounting to 20 billion Euros was launched yesterday.

The first tranche of guarantees for an amount of 20 billion Euros within the total amount of 100 billion Euros approved by the Royal Decree-law 8/2020, of 17 March, is operational as of yesterday, even though it is practically exhausted.

Following our latest news regarding the approval of the first tranche of guarantees amounting to 20 billion Euros by the Council of Ministers held on 24 March 2020, we would like to expand our news on this subject today.

Last week the ICO distributed this first tranche of 20 billion Euros among the main banking institutions based on the market share of credit to companies, including SMEs and self-employed workers, and not on demand.

Thus, according to various sources, the main banking institutions that will be able to offer loans guaranteed by this first tranche will be banco Santander, followed by Caixabank, Banc Sabadell, BBVA and Bankia.

The main banking institutions have announced today that the resources are practically or totally exhausted, especially the loans granted to SMEs and self-employed workers, so it is expected that the Spanish government will soon approve the next tranch of public guarantees through another Council of Ministers.

The ICO has published in recent days more information regarding this tranche of guarantees ( and the banking institutions mentioned above have also announced on their websites the requirements for applying for guaranteed loans that start today, that we understand will be identical or very similar to the requirements for the next tranche of guarantees.

Once requested, the banks will submit these applications to the ICO, which must approve them. The only exceptions will be loans under 50,000 Euros, which will be automatically validated.

We remind you that these loans can be requested for operations and transactions from 18 March 2020 until 30 September 2020 and that the Spanish government will guarantee 80% of the principal of these financing operations for SMEs and self-employed workers. For the remaining companies, the guarantee will cover 70% of new loans operations and 60% of renewals.

Finally, and as warned by the ICO due to some complaints, the banking institution will not be able to condition the approval of these loans to the engagement by the client of any other service or product and they will have to transfer to their clients the benefit of the public guarantee in the form, among of other options, of lower interests, longer term, more financing, etc.

If you have any doubts or queries about this first tranche of guarantees managed by the ICO, you can contact us at

Marinel-lo @ Partners