Bill extends COVID loan guarantees, energy and tax measures

Automatic summary, not yet reviewed

1. The bill would let companies and self-employed workers with State-backed loans request up to three extra years to repay, without exceeding eight years in total. They could also request up to 12 more months of grace period (not paying the principal), with a maximum of 24 months.
2. Banks would have to keep working capital credit lines open until June 30, 2021 for borrowers with a guaranteed loan who meet the requirements. To benefit, borrowers must apply by May 15, 2021 and not be in default or in insolvency proceedings.
3. If the loan extension must be notarized or registered, the bill proposes a 50 percent discount on notary and registry fees.
4. During 2021, meetings of companies, associations, cooperatives and foundations could be held by videoconference even if their bylaws do not provide for it, as long as the secretary verifies the identity of attendees.
5. The Medgaz and Magreb-Europa gas pipelines would be temporarily exempt for fourteen months from certain obligations under the hydrocarbons law, such as separating transport and supply activities.
6. Medical supplies to fight COVID-19 bought by public entities, hospitals and non-profits would have a 0 percent VAT rate until April 30, 2021. Disposable surgical masks for other buyers would carry a 4 percent VAT rate.
7. The bill proposes an extra 6 billion euros for Social Security and 2.3 billion euros to fund unemployment benefits and subsidies through the public employment service, both financed with public debt.
8. The deadline to exchange old peseta banknotes and coins for euros at the Bank of Spain would be extended to June 30, 2021.

Who it affects

• Companies and self-employed workers with State-guaranteed loans: Could request up to three extra years to repay, a longer grace period and continued access to working capital lines.
• Companies, associations, cooperatives and foundations: Could hold their meetings by videoconference during 2021.
• Public entities, hospitals and non-profits: Would buy medical supplies with a 0 percent VAT rate until April 30, 2021.
• People who still hold pesetas: Would have until June 30, 2021 to exchange them for euros at the Bank of Spain.
• Unemployed people and subsidy recipients: Payment of unemployment benefits is backed by an additional 2.3 billion euros.

Words worth knowing

Aval público (public guarantee)

A State guarantee: if the company or self-employed worker does not repay the loan, the State is liable.

Carencia (grace period)

A period when only interest is paid and the loan principal is not repaid.

Concurso de acreedores (insolvency proceedings)

A court procedure for a company or person unable to pay their debts.

IVA (VAT)

Value Added Tax, paid when buying goods and services.

Línea de circulante (working capital line)

Money the bank makes available to the client for day-to-day expenses.

It summarizes the text as it was introduced. It is written by artificial intelligence and may contain mistakes: the official text is what counts. Read the official text · How we make summaries