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#Tax & Legal #Business Legal #Corona #Government #Support Measures

Which new measures have been implemented in the banking plan of 22 March?

Monday 23/03/2020
Financiële steunmaatregelen overheid en banken

The federal government and the banking sector have reached an agreement on two new important support measures aimed at helping businesses and the self-employed to overcome the Coronavirus crisis: payment deferrals for existing credits and a more flexible guarantee scheme for new credits.

The main objective is to prevent repayment and liquidity problems in thriving/profitable companies supporting them through the crisis. In order to ensure that banks comply with this new regulation, a relevant monitoring and sanctioning system will be set up.

To whom do these measures apply?

Any SMEs, the self-employed and non-financial businesses that are currently thriving/profitable.

What does deferred payment of existing loans mean?

Existing credits will be subject to deferred payment until 31 October 2020.

If you, as a company, SME or self-employed individual, incur payment problems and/or problems paying off your existing credits as a result of the Coronavirus crisis, you can request deferred payment. Your company does not have to be incorporated,but it must be thriving/profitable. In concrete terms, this means that:

  • there’s no active restructuring in progress;
  • you were not in arrears on February 1, 2020;
  • you had fewer than 30 days of payment arrears on 29 February 2020.

Providing you meet these conditions, you will be granted deferred payment until 31 October 2020 at no extra cost.

What are the conditions concerning relaxed guarantee rules for new credits?

The relaxation of the government guarantees applies to new credits granted up to and including 30 September 2020.

It applies to all new credits you apply for and to credit lines of up to 12 months.

Again your company has to be thriving/profitable in order to benefit from this flexible arrangement,i.e. your company is not actively restructuring, in arrears on 1 February 2020 or in arrears for fewer than 30 days on 29 February 2020.

The amount of credit covered shall not exceed 50 million euro per company (or cluster of affiliated companies) and each file must be approved by the government first.

The charge for the guarantee is 0.25% for an SME and 0.50% for a large company.

The cost of the credit shall be maximum 1.25%, excluding a fee.

Please note: the relaxation does not apply to refinancing loans, new moratoria (e.g. interest deferrals, capital, etc.) and amounts not drawn on your existing credit lines.

If you have other questions regarding the Corona crisis, please visit our special FAQ

Last update: 30/04/2020

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Bert Lutin
Bert Lutin
Partner Tax & Legal Services