The Spanish Cabinet has approved the first tranche of a line of guarantees for self-employed workers and small companies with an increase budget of €5 billion and approval to increase this to up to €10 billion.
The initial sum is is aimed at those who have been affected by the Russian invasion of Ukraine with lines of credit to deal with the spike in energy and raw material prices as part of Spain’s National Response Plan to deal with the economic impact of the war in Ukraine.
The National Response Plan announced in March is a raft of economic support measures worth €6 billion in direct aid, tax breaks and fuel subsidies, plus a further €10 billion in loans for families and businesses affected by the fallout from the Russian war against Ukraine.
The latest economic outlook for Spain by the European Union shows a marked slowdown to 4% for this year as a result of the fallout from the invasion.
Speaking at a press conference to announce the measures the government spokeswoman Isabel Rodríguez said the package would allow much needed liquidity to keep struggling firms afloat.
The government will guarantee loans of up to 80% of the loan and with repayment of up to 8 years.
Isabel Rodríguez said that the government had also set up an exceptional Covid credit line to deal with the economic consequences of the pandemic.
It provided liquidity of €14 billion to almost 750,000 companies who were most effected by the downturn in the economy due to the coronavirus.