On the other hand, conditions for which they can provide security and get these excasos funding, will be very unattractive. At a time like this, where the official interest rate is at its highest point, the new loans are being signed with some spreads far beyond the usual up to now, we can imagine what will happen at the time that interest start to rise.
Therefore, the choice of SMEs has to be to change the financing for investment. Yesterday we did an echo of the tax advantages that the Government of Navarra will be implemented to encourage private investment in SMEs. That must be the new sense, SMEs have to attract investors and stop looking for bank financing, so the balance will balance investment-financing.
Of course it is much harder to find investors that financial aid. On the one hand because, as already indicated, the traditional investment in Spain is rather excasos and, secondly, because, by providing guarantees, conditions for raising capital through bank, are rather few. Banks are very little concerned about how you will use the money if it is guaranteed that they will recover.
In contrast, investors are much more demanding. Your risk is higher, so that its criteria for deciding which companies to trust must be much harder. They want to know why they need that capital, what they are going to use and yields are going to get for taking that risk. The main poblem is that in addition there may be few investors, small businesses are not prepared to meet these criteria. Those are the two fronts on which we have to work, attract and channel investment and know that SMEs face these new conditions.