The coronavirus causes great financial distress among companies. What measures are banks taking in the coronacrisis? Here we inform you about the latest developments.
Banks offer SMEs six months postponement of repayments
Following the extensive package of the Dutch, the largest Dutch banks are now jointly introducing measures which offer their SME clients extra breathing space. In a joint decision ABN Amro, BNG Bank, ING, Rabobank, Volksbank and Triodos Bank announce that companies financially healthy prior to corona crisis are offered a six months postponement for the repayment of their loans.
The joint approach taken by the banks is provided to corporate clients in all sectors which have a credit of maximum EUR 2,5 million. Banks will closely monitor developments for the group with higher loans. This could result in further steps, in consultation with the government and financial supervisors. The current offer is a minimum arrangement, which allows banks to provide additional tailored support to its clients.
BUSINESS LOAN GUARANTEE SCHEME (GO) temporarily extended
The (extended) Entrepreneur Financing Guarantee (GO) scheme is intended for companies that have difficulties in obtaining bank loans and warranties in the Netherlands. It is proposed to substantially increase the GO's guarantee ceiling from € 400 million to € 1.5 billion, to broaden financing options for companies. With the GO, both SMEs and large companies are assisted by the government with a 50% guarantee on bank loans and warranties for the maximum period of 8 years. Related to the corona crisis, the maximum GO facility is temporarily extended to € 150 million per company.