More than twenty firms are aware of the business opportunities in Spanish debt conversion programs

At the Extenda headquarters in Seville

Presidency, Public Administration and Interior organizes this conference with the objective of reporting on the bidding and execution of projects in developing countries through this means.

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A total of 21 Andalusian companies have participated in the technical conferences on “Opportunities in Spanish debt conversion programs” organized by the Ministry of the Presidency, Public Administration and Interiorthrough Extenda-Andalusian Foreign Promotion Agency at the headquarters of Extenda in Seville.

           

The objective of this day has been to inform the Andalusian companies interested in the programs current Spanish debt conversion, sectors of action, as well as making known the ways to search for project information and business opportunities concrete for their companies.

 

Furthermore, fundamentally from extend It is considered that the bidding and execution of projects in developing countries, financed by the Spanish debt forgiveness, can represent a business opportunity for Andalusian companies.

 

The two presentations that have been part of these sessions have been given by experts from the Deputy Directorate General for External Debt Management and External Financing (Ministry of Economy and Business – Government of Spain). These experts have also subsequently assisted in a personalized manner to the companies that have wanted to ask them questions about specific projects that they are interested in carrying out in the countries subject to PCD (Debt Conversion Program).

 

Specifically, regarding the programs of the Government of Spain For the conversion of debt into investments, the exposure of Joaquín Sabaté Diaz de Entresotos, state economist and technical advisor at the General Subdirectorate of External Debt Management and Foreign Financing of the General Secretariat of the Treasury and International Financing (Ministry of Economy and Business). Besides, Beatriz Escolar Haro, from the Corps of State Commercial Graduates and head of Service in the General Subdirectorate of External Debt Management has presented the overview and recommendations on the debt conversion funds in force (countries, sectors, entities).

 

 

According to Extenda data, the conversion of debt for investments consists of bilateral agreements through which Spain cancels a part of the debt that a debtor maintains with Spain, while the debtor country undertakes to use the released resources in projects that can help to the economic and social development of the country

 

 

 

Particiapant enterprises

 

The participating companies come from Almeria (Imagia and Ingenia Solar Energy ISE), Malaga (Aerum Spain and Aganova), Seville (Isotrol, África Present &Amp-Future, Ambienta Engineering and Agricultural and Forestry Services, Anacrom Diagnostics, Andaluza de Oficinas, ForWit Solutions and Strategies, Inabensa Facilities, Ipeca Biosafety Solutions, Iturri, Logihealth, Tepro Agricultural Consultants, Engineering and Management of the South and Inerco Engineering, Technology and Consulting).

 

Signatures from Cordoba (Evooil 7), Granada (Megasur IT) and Cadiz (Felipe Castellano Constructions and Guadaira Aircraft Maintenance). The organization of this action by extend will be co-financed with funds from the European Union the PO FEDER of Andalusia 2014-2020, endowed with a community contribution of 80%.

 

Debt conversion

 

According to data from extend, the conversion of debt for investments consists of bilateral agreements through which Spain cancels a part of the debt that a debtor maintains with Spain, while the debtor country undertakes to use the released resources in projects that can help the economic and social development of the country. In this way, the resources released with the cancellation of the debt serve to promote investments in that same country.

 

Likewise, these programs may refer to the conversion of debt into private investments or public investments. In debt conversion programs for private investments, the payment obligation of the debtor country is transformed into private investments made, frequently, by companies from the creditor country.

 

In debt conversion programs into public investments, the payment obligation of the debtor country is transformed into public investments of social interest for the debtor. They are articulated through the constitution of funds for the equivalent in local currency of the debt or part of the forgiven debt whose resources will be dedicated to financing projects.

 

El Government of Spain has so far signed 28 debt conversion programs with 20 countries in Latin America and Africa. Of these, only the one signed with Cuba covers private debt, with the rest destined for public projects. The amount of “countervalue funds” in the various beneficiary countries of Spanish debt conversion programs reaches 900 million euros as of December 2017.

 

The sectors in which PCD for public investments have financed the greatest number of projects to date have been the following: education, health, water and sanitation, environment, energy and transportation.