State Guarantees for the new liabilities issued by credit entities
This measure is aimed at providing Spanish financial entities with an insurance mechanism by granting State guarantees to support the liabilities issued by those entities in the medium term, which would reinforce the credit quality of such liabilities while making it possible to improve the conditions to access wholesale credit markets for our banks and savings banks. The credit entities applying for this mechanism must pay an amount that will cover the risk assumed by the State in each operation.
Before 31 December 2008, 53 eligible entities were granted these guarantees. This mechanism will make it possible for our credit entities to use state guarantees in order to issue securities until 15 December 2009 up to 100,000 million Euros maximum. Besides, this guarantee system is going to keep going on next year and, thus, it has already been endowed with 100,000 million Euros more.
Beneficiaries
Just as the Fund for the Acquisition of Financial Assets, this measure is intended to enhance the access to financing in order to cover the needs of our economy, reducing the uncertainty credit entities are facing to obtain medium term financing at present.
Development
This measure was approved of by virtue of Royal Decree 7/2008, dated 13 October, on Urgent Economic-Financial Measures concerning the Action Plan in the countries in the Euro zone.
