Madrid, November 20, 2023. The Recapitalization Fund for companies affected by COVID-19 (FONREC) has accumulated €33 million to date in recoveries as a result of early repayment of the financing granted.
Two companies have already repaid 100% of the financing they received ahead of schedule. The joint amount amortized by these two companies comes to 22.5 million euros, with Universo Pachá Group standing out at 18 million euros.
Thanks to the support of FONREC, both companies were able to overcome the most acute phase of the pandemic, sustain their business models, and preserve jobs. Since the beginning of the recovery phase of the pandemic, these companies have experienced an improvement in their financial situation which has allowed them to once again have access to market financing under more favorable conditions and to repay the monies granted by FONREC.
PARTIAL REPAYMENTS
In addition to the two cases mentioned, seven other companies have made partial early repayments of the financing granted by FONREC. Thus, in total, 33 million euros have already been recovered by the Fund ahead of the contractually established deadlines. Added to all this are the amounts repaid by the companies in accordance with the agreed amortization schedules.
COFIDES Director-General, Miguel Tiana, pointed out that this data shows that “the objectives with which FONREC was created are being met: on the one hand, supporting companies that in the most acute phase of the pandemic suffered marked deteriorations in their solvency and saw the viability of their business models temporarily compromised; on the other hand, favoring conditions so that companies can proceed to repay the financing received as their economic situation improves.”
The Recapitalization Fund for companies affected by COVID-19 (FONREC) was created in 2021 by the Spanish Government to support the financial recovery of Spain's industry by boosting small and medium-sized companies that had severely suffered from the effects of the COVID-19 crisis, allowing them to get back to the levels of viability that they had before the pandemic.
ABOUT COFIDES
COFIDES is a state-owned enterprise specialized in the management of State funds that provide medium- and long-term financing for private investments linked to different public policy purposes. COFIDES directly manages funds aimed at supporting the internationalization of Spanish firms, strengthening the solvency of companies severely affected by the COVID-19 pandemic, to attract foreign direct investment into Spain through co-investment deals and to contribute to the growth of the impact investment ecosystem in Spain. In addition, COFIDES supports the management of the financial cooperation portfolio of the Spanish Agency for International Development Cooperation, promoting sustainable development in emerging economies and developing countries. In the ownership structure of the Company, the Spanish State holds 53% of the equity. The remaining 47% is held by Banco Santander, Banco Bilbao Vizcaya Argentaria (BBVA), Banco Sabadell and Development Bank of Latin America (CAF).
