Government gives $200 million to Spanish company to rebuild Ukraine

1. Exception for countries at war
2. More flexibility, less bureaucracy
3. A fund with a new mission
4. Economic opportunity and political engagement

Measurements collected on Regulatory Impact Analysis Summary Report and in the text royal ordinance projectit will be possible to mobilize up to 200 million euros It will finance projects developed by state-owned companies in the war-torn country.

This regulation allows the government to Unprecedented exceptions in FIEM operationsan instrument created in 2010 to support the international expansion of Spanish business structures.

For the first time, this fund non-refundable assistance -In other words, direct subsidy— in addition to credits with more flexible terms.

According to accessible Ministry of Economy documents, its purpose digital confidentialteeth “Adapting FIEM operations to the economic and financial realities of Ukraine” and “Has flexible mechanisms for warranty analysis” during an operation with a Ukrainian organization.

Exception for countries at war

The Royal Decree in process amends three articles (Articles 10, 21 and 24) of the current Regulation to: Facilitate the financing of projects related to the reconstruction of the country.

While this process continues, FIEM may accept warranties. ”No need to perform special solvency analysis”, according to the project text.

In total, Maximum risk limit is 100 million euros in repayable credit others $100 million in direct aid.

The ministry explains as follows: Spanish Ukraine Reconstruction Officerecently created within the department, “Meeting the strategic needs of economic and trade policy between Spain and Ukraine” and is associated with the growing interest of Spanish companies in that market.

This office has the following features mobilize public financial instrumentsas well as FIEM itself. FIEM committee Participate in decisions regarding Ukraine.

The situation in Europe also influenced this decision. The ministerial document emphasizes that this measure has been adopted.Accompanied by firm institutional commitment and support from European mechanisms such as the “Ukraine Facility”EUR 50 billion is expected to be mobilized between 2024 and 2027. ”

Within this framework, Spain seeks to: Position yourself as a relevant actor The country is in the process of rebuilding and economic recovery.

More flexibility, less bureaucracy

The FIEM regulatory reform also has the following internal objectives: Simplify administrative procedures Streamline the use of public funds. According to the shortened report, the standard “Reduce administrative burden” and does not impose any new obligations on economic operators.

In fact, the Ministry of Foreign Affairs believes that: No need to conduct prior public consultationThis is because these are “specific changes” that only affect the internal functioning of the fund.

According to the report, the Royal Decree complies with: principles of good regulation Contained in Law 39/2015 on Common Administrative Procedures, inter alia Necessity, effectiveness, proportionality, legal certainty, transparency, efficiency.

The text adds that it is justified “in the general interest”, given that it allows the country’s financial instruments to be adapted to the environment. Strategic priorities of Spanish trade policy regarding Ukraine.

At the economic level, the government will ensure the following measures: No impact on budgetBecause FIEM has sufficient resources of its own. its treasury exceeded 2.5 billion euros by the end of 2024The report says credit and aid are guaranteed to be provided without resorting to new public funds.

A fund with a new mission

he Fund for the internationalization of the companyCreated by Law November 2010has been one of the main instruments of state financial support for exports and foreign investment for more than a decade.

Its purpose isPromoting the export of goods and services by Spanish companies and direct investment in Spain abroad” according to the regulations regulating it.

With this Royal Decree, the executive branch expands its scope by allowing: Exceptional behavior in times of conflictwhich was not considered in the original regulations.

correctionIntroducing greater flexibility mechanisms for warranty analysis” is permitted to be used. Non-refundable resources In the “Finalist” project carried out by a Spanish company in Ukraine, “While the reconstruction continuesThe maximum donation amount is 100 million euros.

The regulation also strengthens interagency coordination and incorporates representatives from the fund’s management committee into the fund’s management committee. Spanish Ukraine Reconstruction Officealong with those of Official credit bureau (ICO), Spanish Export Credit Insurance Company (CESCE), Spanish Development Finance Company (COFIDES) and Spanish Agency for International Development Cooperation (AECID).

Economic opportunity and political engagement

The ministry’s document emphasizes that this measure is part of a dual commitment. Strengthening the economic and internationalization of Spanish companiesand Contribute to the reconstruction of a politically and war-torn country.

In the words of memory, the reconstruction of Ukraine “Economic and strategic opportunities for Spanish business structures” and “Contributing to the economic and social recovery of war-torn countries”.

The Royal Decree will allow FIEM to be more agile. ”Get your project started quickly”, without compromising the financial stability of the Fund.