President Sebastián Piñera, released a series of announcements on economic matters this Sunday, in order to deal with the consequences left by the coronavirus pandemic. In the context of this emergency, the Mandate insisted that the situation is complex, especially for micro, small and medium-sized enterprises. It also detailed what the regulations of the loans that will be delivered by the state-guaranteed banks will be. “This week we announced a state guarantee plan for 3 billion dollars. Success requires the active and expeditious, and true collaboration of banks,” he said, adding that the goal is that these lines of credit can reach “the companies that need them” and in “preferred interest-cup and term conditions.” In this sense, it will be allowed to ease the financial burden of companies, by providing facilities or lines of working capital.” The government defined that line-of-credit amounts may reach up to three months of business sales in a normal period. (…) they will have six months of grace and will be payable in installments,” Piñera said, adding that these are payment terms between 24 and 48 installments. In doing so, he added that companies in this category will have a preferred cup. “It’s going to be zero, or even negative,” he said, stating that it will be applied “depending on how future inflation evolves.”
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