Cesce COVID Line
Cesce has supported Spanish exporters during COVID
Over the past two years, Cesce has supported international Spanish companies through a special coverage programme worth €2 billion, designed to mitigate the economic impact of the COVID-19 pandemic, under the EU’s Temporary Crisis Framework for State Aid.
Cesce’s COVID lines have allowed 1,384 companies to access lines of credit for a value of €2.85 billion. It is important to point out that the management of this programme was made possible by the participation of 22 financial institutions, headed, in terms of the number of applications, by Bankinter, Banco Santander, Bankia, Abanca and Deutsche Bank.
The sectors whose companies obtained the greatest number of facilities under the lines were wholesale and retail trade, the food industry, machinery manufacturing, professional, scientific and technical activities, transport and storage, and construction.
On the occasion of the implementation of the first COVID line and the success of its management, in November 2020 Cesce employees, together with those of ICO and COFIDES, received from the Chairman of the Exporters’ Club the award for the best business response to the pandemic, in “recognition of their great engagement and effort.”
With the launch and successful management of the contracting of these lines, Cesce once again demonstrated its commitment to the interests of the Spanish economy and its export sector.
Cesce’s COVID lines have allowed 1,384 companies to access lines of credit for a value of €2.85 billion. It is important to point out that the management of this programme was made possible by the participation of 22 financial institutions, headed, in terms of the number of applications, by Bankinter, Banco Santander, Bankia, Abanca and Deutsche Bank.
The sectors whose companies obtained the greatest number of facilities under the lines were wholesale and retail trade, the food industry, machinery manufacturing, professional, scientific and technical activities, transport and storage, and construction.
On the occasion of the implementation of the first COVID line and the success of its management, in November 2020 Cesce employees, together with those of ICO and COFIDES, received from the Chairman of the Exporters’ Club the award for the best business response to the pandemic, in “recognition of their great engagement and effort.”
With the launch and successful management of the contracting of these lines, Cesce once again demonstrated its commitment to the interests of the Spanish economy and its export sector.
Extensions of insured credit lines
The deadline for applying for new coverage under the COVID lines has passed. However, the Cesce team remains at your disposal to manage the existing coverages through to their expiry.
In the downloadable files at the end of this page you can consult the instructions for requesting extensions to maturity dates of insured credit lines and the applicable rules.
In the downloadable files at the end of this page you can consult the instructions for requesting extensions to maturity dates of insured credit lines and the applicable rules.
How do I report unpaid at due date?
We remind you that in order for an unpaid insured credit line to be included in the coverage, the non-payment must have occurred during the period of validity of the insurance, as established in Article 4 of the General Conditions, and in section 2.3 of the Particular Conditions of the Policy.
In the event of non-payment on an insured due date under a policy, based on the provisions of Article 17 of the General Conditions, you are requested to send a notification to [email protected]
In the event of non-payment on an insured due date under a policy, based on the provisions of Article 17 of the General Conditions, you are requested to send a notification to [email protected]
Downloadable files
Code of Best Practices
Operations to be followed by member Financial Institutions
Measures in support of solvency
Royal Decree-Law 5/2021 of 12 March on extraordinary measures to support business solvency in response to the COVID-19 pandemic (as amended by Royal Decree-Law 6/2022 of 29 March adopting urgent measures in the framework of the National Response Plan to the economic and social consequences of the war in Ukraine) created the Code of Good Practice aimed among other aspects at promoting coordination among financial institutions in adopting measures that contribute to strengthening the solvency of Spanish businesses and self-employed persons going through temporary financial imbalances.
Among the measures envisaged are three options for making loans more flexible, with State coverage, granted by financial institutions that are signatories to the Code of Good Practice:
• I. Extension of maturity dates
• II. Conversion of financing transactions into participative loans not convertible into equity
• III. Transfers by the State to reduce the portion of principal with public coverage.
By means of a Resolution of the Council of Ministers of 11 May 2021 the Code of Good Practice was developed. The Resolution has been amended twice, on 30 November 2021 and subsequently on 29 March 2022.
The measures envisaged in the Code of Good Practice are contained in Annexes I to IV of the Resolutions referred to:
Annex I: Contains the obligations of financial institutions
Annex II: Contains the terms and conditions for granting extensions to terms
Annex III: Contains the terms and conditions for converting insured credits into participative loans
Annex IV: Sets out the terms and conditions on which transfers will be established to reduce the principal in processes of renegotiation of insured debt involving a haircut.
Among the measures envisaged are three options for making loans more flexible, with State coverage, granted by financial institutions that are signatories to the Code of Good Practice:
• I. Extension of maturity dates
• II. Conversion of financing transactions into participative loans not convertible into equity
• III. Transfers by the State to reduce the portion of principal with public coverage.
By means of a Resolution of the Council of Ministers of 11 May 2021 the Code of Good Practice was developed. The Resolution has been amended twice, on 30 November 2021 and subsequently on 29 March 2022.
The measures envisaged in the Code of Good Practice are contained in Annexes I to IV of the Resolutions referred to:
Annex I: Contains the obligations of financial institutions
Annex II: Contains the terms and conditions for granting extensions to terms
Annex III: Contains the terms and conditions for converting insured credits into participative loans
Annex IV: Sets out the terms and conditions on which transfers will be established to reduce the principal in processes of renegotiation of insured debt involving a haircut.
Application of the measures to the Cesce COVID lines
These measures will apply to transactions insured by Cesce by virtue of the Extraordinary COVID Short-term Credit Lines I and II approved by Royal Decree-Law 8/2020 and the Resolution of the Delegated Committee of the Government for Economic Affairs of 23 October 2020.
The measures apply to the debtor’s request (which can be one or several) and to insured loans granted between 17 March 2020 and 13 March 2021. The Code of Good Practice regulates which of these requests for solvency support measures must necessarily be granted and which require the approval of the financial institutions. It is for the financial institutions to verify compliance with the regulations and to gather and retain the corresponding evidentiary documentation. Once it is satisfied that the regulations have been complied with, the financial institution will inform Cesce of the measures to be applied in accordance with the provisions of the documentation available on this page, or will request them in the case of transfers for reduction of principal.
The measures apply to the debtor’s request (which can be one or several) and to insured loans granted between 17 March 2020 and 13 March 2021. The Code of Good Practice regulates which of these requests for solvency support measures must necessarily be granted and which require the approval of the financial institutions. It is for the financial institutions to verify compliance with the regulations and to gather and retain the corresponding evidentiary documentation. Once it is satisfied that the regulations have been complied with, the financial institution will inform Cesce of the measures to be applied in accordance with the provisions of the documentation available on this page, or will request them in the case of transfers for reduction of principal.
Procedures
The procedures envisaged for the application of these measures is set out in detail in the two bottom sections (depending on which version of the Code of Good Practice each institution has signed up to).
The deadline for notifying the measures is 1 June 2022 (and 1 June 2023 for requesting transfers to reduce principal).
The measures must be notified or requested using the forms available in these sections. Knowledge of and compliance with all the rules set forth at the beginning of this text are presupposed. In the case of a request for transfers to reduce principal in the context of a debt renegotiation agreement, financial institutions must request the specimen contract to be signed in advance between the institution and Cesce, which is necessary in order to be able to request and execute after this kind of measure.
The deadline for notifying the measures is 1 June 2022 (and 1 June 2023 for requesting transfers to reduce principal).
The measures must be notified or requested using the forms available in these sections. Knowledge of and compliance with all the rules set forth at the beginning of this text are presupposed. In the case of a request for transfers to reduce principal in the context of a debt renegotiation agreement, financial institutions must request the specimen contract to be signed in advance between the institution and Cesce, which is necessary in order to be able to request and execute after this kind of measure.