The Guarantees and Collateral Company AvalCanarias registered until November 2021 a growth of 47% in the number of operations compared to the same period of 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 Islands Vice-President and Minister of Finance, Budgets and European Affairs, the department that channels the majority participation of the Canary Islands Executive in its Board of Directors.
Rodríguez explained that the renewed commitment of the current autonomous Executive for AvalCanarias, induced by its status as the largest shareholder, is giving good results, "something that is fundamental always, but especially in times of economic difficulties such as the ones we are going through".
"This 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 added that "efficient management has been one of the essential pillars to achieve these success rates, but also with a view to the future, designing a strategic plan 22/24 for the company, which guarantees its solvency and stability."
Precisely, the injection of liquidity to SMEs and the self-employed through the granting of advantageous financing lines 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 an important 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 72% in volume, compared to the 39% average decrease in the sector 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 of this, which stands at 37%.
Similarly, AvalCanarias rises two positions in the state ranking by number of operations and by volume of these, in both cases from 14 to 12, both compared to 2020 and in relation to 2019. As for the Living 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.
In terms of the number of associated SMEs, it is the seventh SGR with the highest relative growth, with an increase of 8% compared to the sector average of 6%, going from 12th to 11th place 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 in the Canary Islands, contributing to the maintenance of 4,000 jobs.
In 2020, more than 200 Canary Islands SMEs and self-employed were also helped, introducing grace periods for the amortization of capital in their guaranteed loans and granting facilities for the payment of accrued guarantee commissions. All this was done by promoting the online platform, through which it has been at the service of Canary Islands SMEs at all times, even during confinement.
As for new initiatives, AvalCanarias launched on October 1 the Canary Islands 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 those older and experienced professionals, with ideas and 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 applications have been received, for an amount of 5 million, with many still in the process of providing 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, including the launch, a few days ago, of the Mi Taxi Eléctrico line, aimed at financing the purchase in preferential conditions of 100% electric vehicles for the taxi service throughout the Archipelago.
Typology of the guaranteed
AvalCanarias provides 48% of the guarantees to self-employed and 49% to limited companies, while 82% of the total is provided to companies with up to 10 employees and 63% to self-employed and companies with less than 5 employees.
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 per year and 74% of the guaranteed operations have a term of more than 5 years.
