One year has passed since the beginning of an unexpected situation. One year since the business fabric had to adapt to an unforeseen context. With an 11.5% drop in Catalonia's GDP, declines in major sectors of activity, and a strong impact on business activity, employment, and consumption, finding the right economic recipe was more important than ever. And this long-term financing and investment, characteristic of public banking and known as patient capital, has turned out to be the secret ingredient.
Throughout 2020, the ICF has financed nearly 3,800 companies with 1,329 million euros and has thus contributed to the creation of 123,500 new jobs. Thanks to its public banking vocation and its anti-cyclical role, the Institut Català de Finances (ICF) becomes a key player capable of reactivating the economy, promoting sustainable growth, and fostering new innovative and transformative business models.
"The context caused by covid-19 has highlighted the capacity of public banking to respond to the direct liquidity needs of the business fabric," assures the entity's CEO, Víctor Guardiola. "The anti-cyclical role and its validity as a complement to other sources of financing have been reaffirmed. The ICF has been, during 2020, a driver of the economy, an investment tractor, and a multiplier of resources," he adds.
Long-term investment as an oxygen balloon
As an investor with patient capital, during 2020, the ICF has focused its efforts on two strategic objectives: covering the liquidity needs of companies and ensuring the maintenance of jobs. That is, it has provided oxygen to the business fabric most affected by the crisis.
The implementation, thanks to the support of the Generalitat, of more than 1,000 million euros in financing solutions, as well as the flexibility of the payment schedule, have been some of the measures taken at the beginning of the pandemic to achieve this. These actions have also allowed accelerating the reactivation of the economy and the transition towards a more sustainable and resilient economic model.
Of the 1,329 million euros financed, 97% has benefited entrepreneurial professionals, SMEs and micro-enterprises; 68.4% of the total (about 900 million) has been allocated to 3,000 companies affected by covid-19, and one third of the total financing has gone to trade, tourism and transport, three of the sectors most affected by the crisis. In addition, social housing projects, initiatives related to cultural goods and services, and projects related to education and sports have been financed with more than 60 million euros.
The implementation, thanks to the support of the Generalitat, of more than 1,000 million euros in financing solutions, as well as the flexibility of the payment schedule, have been some of the measures taken at the beginning of the pandemicProjects, all of them, strategic that positively impact not only the economic sphere, but also society and the environment.And that highlight the ICF's commitment to theUnited Nations Global Compact, the world's largest corporate social responsibility initiative, to which it adhered in 2020.
"These months we have been more aware than ever that, as a public bank, it was necessary to support the business fabric. But the important thing is not only to meet the current needs of the productive fabric and the Catalan economy, but also future ones, and to favor continued growth and the real reactivation of the economy," says Guardiola.
In order to continue growing and innovating, always from a social and sustainable perspective, the ICF accompanies companies and entities throughout their entire life cycle, from their creation to the stages of expansion and consolidation. It is about listening to their needs and making available the solutions that best adapt. And waiting, because patience is a virtue and an economic breath of fresh air.
For more information on the mission and activity of the ICF, you can consult the 2020 Annual Report.