Spanish government requests all of its €94 billion Next Generation cash assignment

SPAIN will ask Brussels for a total of €94 billion from the Next Generation’s Recovery and Resilience plan introduced to offset the effects of pandemic.

“This will activate all of the transfers and loans that have been assigned to Spain,” announced Nadia Calviño, government vice-president and minister of Economic Affairs minister, announced during the June 6 Cabinet meeting.

Spain has also added a request for an additional €10.3 billion to its initial recovery plan via the Next Generation fund which would be used for 12 strategic projects that are already underway.

The €84 million in “soft” loans will provide Spain with a safety net which would permit “a strong rhythm” of public and private investment for the future.

Calviño also stressed that this did not imply an immediate increase in the country’s debt as there will be a 30-year repayment period with an extra 10 years’ grace. The government calculates that this will work out to be around 35 basis points cheaper than raising the money through Treasury bonds.

These loans will be channelled through financial vehicles, Calviño said, citing the Autonomous Communities’ Resilience Fund, which would be allocated €20 billion to finance sustainable investment projecs.

This would be handled in collaboration with the European Investment Bank, the vice-president said, although the Official Credit Institute would channel a further €22.5 billion to be used for business projects – particularly those involving green investment – with €1 billion set aside for tourism.