CECA Entities Adhere to the Code of Good Practices for Renegotiating Secured Debt

CaixaBank, Kutxabank, Cajasur Banco, Abanca, Unicaja Banco, Ibercaja Banco, Liberbank, Caixa Ontinyent, and Colonya Pollença adhere to this voluntary Code

The Code of Good Practices provides solutions for freelancers and viable companies with secured financing (normally by ICO), whose financial situation has deteriorated as a result of the pandemic

The entities associated with CECA adhere to the “Code of Good Practices for the Framework of Renegotiation for Clients with Secured Financing”, approved last May 11 by the Council of Ministers. These entities are CaixaBank, Kutxabank, Cajasur Banco, Abanca, Unicaja Banco, Ibercaja Banco, Liberbank, Caixa Ontinyent, and Colonya Pollença.

The Board of Directors of CECA has today analyzed the Code of Good Practices, approved under Royal Decree-Law 5/2021, of March 12. The main purpose of the measures contained in it is to provide financial solutions to freelancers and viable companies that have suffered a deterioration in their financial situation as a consequence of the pandemic, and that have debt guaranteed by the Official Credit Institute (ICO) and other public bodies.

Adherence by credit institutions is voluntary and entails the commitment to adopt, among other things, the following measures:

– Extend the maturity for operations with public guarantees in the event that the debtor meets certain requirements.

– Evaluate the conversion of the debt with public guarantees into non-convertible participative loans.

– Consider the reduction of the outstanding principal.

The granting of these measures will be carried out in accordance with the internal risk management policies and procedures of the institutions.

A coordination mechanism is also established among the financial entities that have exposure to the same freelancer or company, in order to ensure uniform treatment.

Those benefiting from this plan could include holders of the 342,236 loans and credits secured by ICO that CECA entities have granted as of April 30, 2021. These entities account for a total financing amount of 37,439 million euros.

Objective: Preserve the Solvency of Businesses

This is yet another example of public-private collaboration in which the CECA sector plays a fundamental role in supporting the business fabric that is recovering after the pandemic.

The entities of CECA demonstrate once again with their adherence to this Code, their determination to contribute to the recovery of the productive fabric of our country. Other sectoral initiatives to mitigate the effects of the pandemic through public-private collaboration have been: the sectoral agreement for the credit moratorium and the advance of public benefits (especially those resulting from ERTE).