The Vice-President announced in Angra do Heroísmo the creation of a new line of credit based on a mutual guarantee scheme, designated as "Capitalizar Mais," which will provide 79 million Euros in funding to Azorean companies under more favourable conditions.
 
"Following the approval of the strategy towards the implementation of financial tools for direct support to Azorean companies, the Regional Government has developed a process of coordination with IFD- Institute for Financial Development," with a view to their operation in an active investment phase, stressed Sérgio Ávila.
 
The government official spoke on the presentation of the new line of credit. According to him, "as the Region is experiencing a new cycle of economic growth and increased private investment, new financial support mechanisms should be created for companies by ensuring the conditions to facilitate the access to bank credit and reducing funding costs."
 
The Vice-President recalled that "the Government created specific lines of credit in a not too distant past, which played a key role in securing numerous jobs as well as the permanence of several companies in the market." In this context, he added that "new financial tools should be directed towards the funding" of new investments.
 
"The Azorean Government has worked to ensure the availability of new mechanisms to support the funding and capitalisation of companies. Hence, they may fully benefit from the existing investment incentive schemes through Competir+ and will be endowed with the necessary resources to produce more, invest more and the create more jobs," said the Vice-President.
 
This measure is already accessible to companies through the adhering banks. It aims to support the financing of new investments in tangible and intangible fixed assets as well as to increase working capital associated with an effective growth of activity.
 
The "Capitalizar Mais" line of credit also comprises non-eligible expenses in applications approved under Comptir+, including working capital.
 
The new financing tool also provides for support to the acquisition of property and land for business activity purposes. The maximum amount cannot exceed 50 percent and 10 percent of the overall amount of financing, respectively.
 
"Companies with applications approved under the regional incentive schemes, such as Competir+, may finance under the same eligible costs under this line of credit, provided that the amount does not exceed the Community limits applicable to state aid," said the Vice-President.
 
The credit operations to be carried out under "Capitalizar Mais" benefit from an autonomous guarantee intended to secure up to 80% of the outstanding capital.
 
The term of credit operations may be extended up to 12 years with a grace period of up to three years. The interest rates will have a spread with maximum limits ranging from 1.86% to 3.4%, which are significant below the average market prices.
 
"It is quite clear that Azorean companies have seized the public support and incentives at their disposal as well as the more favourable fiscal conditions to invest and innovate," said Sérgio Ávila. With this measure, the Azorean Government "facilitates and encourages private investment by reducing constrains and difficulties that companies still faced in their relation with banks."