Analysis of Royal Decree Law 5/2021 (V): Modifications to loan amortization schedules.

Amendment of Royal Decree-Law 11/2020, of March 31, which adopts additional urgent measures in the social and economic field to deal with COVID-19.

1. New features

• Beneficiaries of loans granted to industrial projects by the General Secretariat for Industry and SMEs may request modifications to the amortization schedule of the same during the period of two and a half years from the entry into force of Royal Decree 463/2020, of March 14.

• The modifications to the amortization schedule may consist of:

1. Increase in the maximum amortization period.
2. Increase in the maximum grace period, if any principal installment has not yet become due.

• Calendar modifications will not be authorized in the following cases:

1. That there is no sufficiently proven impact that justifies that modification.
2. That the company not up to date with its tax and social security obligations.
3. That the company has debts for the repayment of aid or debts for the repayment of loans with the Administration.
4. That the company not fulfilled its obligations to present accounts to the Commercial Registry or to the corresponding Registry of Cooperatives.
5. That the debt maturity is a consequence of a refund due to non-compliance or waiver.
6. That in the case of projects that are within the investment justification period, there is not a sufficient degree of progress and that it does not guarantee compliance with the objectives committed to in the concession resolution.

2. Term

• This request, which must be submitted at least two months before the first due date of the loan that is to be modified, will be expressly resolved by the body that issued the granting resolution.

• The deadline for a decision will be 6 months from the date of submission of the application. If, after this period, the competent body has not notified the decision, the interested parties will be entitled to consider the application rejected.

We remain at your disposal for any questions or queries you may have.

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Sonia Fernández Álvarez

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