IDEAS home Printed from https://ideas.repec.org/a/sdo/regaec/v21y2012iex_11.html
   My bibliography  Save this article

The ICO: Public Funds Financing in Times of Crisis

Author

Listed:
  • del Campo Villares, Manuel Octavio
  • Ferreiro Seoane, Francisco Jesús

Abstract

In the present socioeconomic context where the economic crisis, the financial instability and the political distrust dominate financial markets , the flow of credit to the productive system has been reduced to the minimum. The need for private credit was growing exponentially, not only in order to favour investment, but also to guarantee the normal functioning of the cycle of exploitation. As consequence, public financing turns into an urgenc. Without it, access to credit by firms would be practically annulled. Within the frame that regulates public financing in Spain, is the Institute of Official Credit (ICO) who plays a significant role, (provides more than 40 % of the public total financing and of 65 % in case of the Central Administration, in 2011), It is not possible to understand the productive investment without taking into consideration the action of the Institute, which offers its funds on preferential conditions. However, in spite of the advantage that represents obtaining financing from ICO, it does not reach swiftly the final beneficiary (the firm) with the necessary efficiency. We must then analyse and check permanently the way in which the Institute commercializes and manages its activity of financial mediation.

Suggested Citation

  • del Campo Villares, Manuel Octavio & Ferreiro Seoane, Francisco Jesús, 2012. "The ICO: Public Funds Financing in Times of Crisis," Revista Galega de Economía, University of Santiago de Compostela. Faculty of Economics and Business., vol. 21(ex).
  • Handle: RePEc:sdo:regaec:v:21:y:2012:i:ex_11
    as

    Download full text from publisher

    File URL: http://www.usc.es/econo/RGE/Vol21_ex/castelan/art11c.pdf
    Download Restriction: no

    More about this item

    Keywords

    Credit; Investment; Mediation; Markets; Interest rate;

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:sdo:regaec:v:21:y:2012:i:ex_11. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Ana Iglesias Casal). General contact details of provider: http://edirc.repec.org/data/feusces.html .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.