On July 7th, RDL 25/2020 entered into force, which aims to adopt measures to preserve the productive fabric and to deal with the transitional difficulties of companies, in order to overcome the consequences of this pandemic.
New Avales Line
This new line of guarantees will be channelled through the Official Credit Institute (ICO), amounting to EUR 40,000 million and aimed at promoting the realisation of new business investment projects.
The specific characteristics of the Avales Line, coverage percentage and tranche distribution will be approved by Council of Ministers Agreement in the coming weeks.
Strategic Business Solvency Support Fund
The Royal Decree also provides for the establishment of a Fund to Support Strategic Business Solvency. It is a new instrument that will be endowed with EUR 10 billion and whose objective is to provide temporary public support to strengthen the solvency of non-financial companies affected by the COVID-19 pandemic. This fund will be attached to the Ministry of Finance and will be managed through the State Society for Industrial Participations (SEPI), in accordance with the State aid rules of the European Commission.
The Strategic Business Solvency Support Fund is aimed at societies that face severe temporary difficulties as a result of the situation generated by COVID-19 and which are considered strategic for various reasons, such as their social and economic impact, their relevance for safety, human health, infrastructure, communications or their contribution to the smooth functioning of the markets.
“Renew 2020” plan
The Royal Decree also includes the approval of the “Renew 2020” programme for the renovation of the vehicle fleet. The aim of this EUR250 million plan is to stimulate demand, activate production in Spain and promote the replacement of older and polluting vehicles.
Aid under the Renewal 2020 scheme will be granted directly and can range from EUR 300 to EUR 4,000 depending on the type of vehicle and the beneficiary. An additional EUR 500 may be available in the case of flattening a vehicle over twenty years of age, beneficiaries with reduced mobility or those belonging to households with a monthly income of less than EUR 1,500.
They may benefit from the grants provided for in the RENOVE Plan 2020:
a) Self-employed professionals.
b) Natural persons of legal age residing in Spain not included in subparagraph (a).
c) Private enterprises, which have an establishment validly constituted in Spain at the time of submission of the application
Strengthening of the tourism sector
In addition to the previous measures, the Royal Decree includes three measures to support the Spanish tourism sector.
• A system of financing projects for the digitisation and innovation of the tourism sector is put in place.
• Creation of the instrument called “Plans of Tourist Sustainability in Destinations”. The objective is to promote the development of tourist destinations located in rural and interior areas.
• Mortgage mortgage for properties affected by tourist activity, through the granting of a moratorium period of up to twelve months for mortgage financial transactions signed with credit institutions. Self-employed workers and legal persons with registered office in Spain may be beneficiaries, provided that they experience financial difficulties as a result of the health emergency.
Permanent discontinuous workers in the tourism sector
It provides for the extension of bonuses and their compatibility with exemptions from social security contributions. They may apply a bonus from July to October, including 50 % of the company’s social security contributions for common contingencies, as well as the concepts of joint collection of Unemployment, FOGASA and Vocational Training of these workers.
Minimum living income
Amendment of Royal Decree-Law 20/2020, of 29 May, establishing the minimum living income.
A new paragraph 4 is added to Article 20 as follows:
“4. Decisions on minimum living income benefits shall be communicated by the National Social Security Institute, without the prior consent of the holder of the personal data, to the Autonomous Communities and local entities through adherence to the computer procedures with the requirements established by the National Social Security Institute, in order to provide the information strictly necessary for the recognition and control of benefits competence of these administrations.”
The transmission of information between the INSS and the Foral Farms is also permitted in the same terms as those provided for in relation to AEAT, which is necessary for the application of the said transitional provision in the foral territories.
At PEREZ DOMINGO-LCS Valencia we are at your disposal to attend to any queries regarding the current situation, and the new measures being implemented to mitigate the effects caused by the COVID-19 pandemic. We will inform you of all of them as soon as we get to know them and analyse them.
