SANTA CRUZ DE TENERIFE, Jan 8 (EUROPA PRESS) –
The Sociedad de Garantías y Avales AvalCanarias registered until November 2021 a growth of 47% in the number of operations compared to the same period in 2019 -before the pandemic-, which places it as the fifth entity of its kind at the state level that most increased its activity.
The intensity of the Government’s support for SMEs and the self-employed in the Islands, together with the renewal of the management structure of AvalCanarias, is at the origin of this positive balance, according to Román Rodríguez, Canary Island Vice President and Minister of Finance, Budgets and Affairs Europeos, department that channels the majority participation of the Canarian Executive in its Board of Directors.
Román Rodríguez explained that the renewed commitment of the current autonomous Executive by AvalCanarias, induced by its status as the largest shareholder, is giving good results, “something that is always fundamental, but especially in times of economic difficulties like the ones we are going through.”
“It is a new vision of the guarantee society in which support for our Canary Islands companies prevails and whose objectives have been restructured to be able to reach them more effectively,” added the vice president, who explained that efficient management “It has been one of the essential pillars to achieve these success rates, but also looking to the future, designing a 22/24 strategic plan for society, which guarantees its solvency and stability.”
Precisely, the injection of liquidity to SMEs and the self-employed through the granting of advantageous lines of financing has allowed the survival of many of them, recalled the vice president, who stressed that the structure of the Canary Islands productive fabric is almost monopolized by small companies and highlighted the Covid line launched in 2020 with a significant contribution from the Executive -7.5 million euros- which allowed the maintenance of 4,000 jobs.
According to the latest available data (dated November 30, 2021), AvalCanarias is the second SGR with the highest relative growth among the 18 entities of this type in the State; Specifically, it registered a 35% increase in the number of operations and a 72% in volume, compared to the 39% decrease in the sector’s average in number and 36% in volume, which certifies an anti-trend evolution.
If the comparison is made with respect to 2019, the growth is 47%, the fifth highest in the sector, above the average for this, which stands at 37%.
In the same way, AvalCanarias rises two places in the state ranking by number of operations and by volume of these, in both cases from 14 to 12, both with respect to 2020 and in relation to 2019. Regarding Live Risk, it is the fifth SGR that grows the most, tied with the two SGR that precede it, with 17% compared to 10% of the sector, and maintaining the 14th position at the national level.
Regarding the number of associated SMEs, it is the seventh SGR with the highest relative growth, with an increase of 8% compared to the 6% average for the sector, going from position 12 to 11 in the ranking, with 5,000 associated SMEs.
COVID LINE
The COVID-19 Liquidity Line, launched with the support of the Government of the Canary Islands and the island councils of Gran Canaria, Fuerteventura and Tenerife, managed to inject 24 million euros to more than 400 SMEs and self-employed persons in the Canary Islands, contributing to the maintenance of 4,000 jobs.
In 2020, more than 200 Canarian SMEs and freelancers were also helped, introducing grace periods for repayment of capital in their guaranteed loans and granting facilities for the payment of accrued endorsement commissions. All of this was done by promoting the online platform, through which the Canary Islands SMEs have been served at all times, even during confinement.
In relation to new initiatives, AvalCanarias launched on October 1 the Canarias Emprende line, aimed at facilitating the start-up of new businesses that favor the recovery and economic growth of the Canary Islands, especially aimed at trained young people and older professionals and with experience, with ideas and an entrepreneurial spirit.
The amount of this line is up to 85 million euros, with a maximum limit of 100,000 euros per operation, with which up to 850 operations could be formalized, with an induced investment of just over 100 million. In the first 3 months of activity, more than 100 requests have been received, amounting to 5 million, and many are still in the process of providing the information, but 21 operations have already been authorized or signed for an amount of 0.9 million.
In addition, the company is activating various initiatives to finance investments in sustainability and digital transformation, among which is the launch, a few days ago, of the My Electric Taxi line, aimed at financing the purchase of vehicles under preferential conditions 100 % electric for taxi service throughout the Archipelago.
TYPOLOGY OF THE GUARANTEED
AvalCanarias provides 48% of the guarantees to freelancers and 49% to limited companies, while 82% of the total is given to companies with up to 10 workers and 63% to freelancers and companies with less than 5 workers.
The construction, commerce and transport sectors account for 50% of the guarantees provided. Almost 70% of the operations in force are with companies that invoice less than 300,000 euros per year and 74% of the guaranteed operations have a term of more than 5 years.
