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Additional measures financing and liquidity – Impact Coronavirus (COVID-19)

18 March 2020
Banking & Finance - Corona/COVID-19 Helpdesk

On the 17th of March 2020 the Dutch government announced a number of additional support measures to combat the economic consequences of the Coronavirus. In this newsflash we highlight the – from a financing perspective relevant – newly announced measures, which are in addition to measures previously announced. We refer to our newsflashes: Impact Coronavirus (COVID-19) on financing and liquidity and Extended BMKB scheme in force at as a result of new measures against impact of Coronavirus (COVID-19).

A large group of entrepreneurs and companies active in various sectors can benefit from the additional measures which aim to limit the negative impact of the measures imposed to combat the Coronavirus.  Self-employed persons, SMEs and large companies can benefit from these new measures.

By introducing these new and amended schemes it is envisaged that entrepreneurs and companies can continue to pay their staff, offering self-employed persons a financial bridging opportunity through, inter alia, flexible tax arrangements and compensation which should provide for additional credit options. In this way an attempt is made to keep liquidity in the companies.

In short, the following additional measures have been announced:

Expanding the Guarantee Enterprise Financing Scheme (GO financing)

Companies that experience difficulties in obtaining bank loans and bank guarantees can make use of the Guarantee Enterprise Financing Scheme (GO financing), which provides support to companies where they face difficulties in obtaining bank financing and, for example, obtaining (bank) guarantees. The existing scheme was limited to € 400 million and will be increased to € 1.5 billion. Both SMEs and large companies can make use of the GO financing scheme and can receive a government guarantee under this scheme up to 50% of the amount obtained under a bank loan or bank guarantee. The maximum amount that can be drawn under the GO financing scheme will be temporarily increased per company to € 150 million.

Expanding BMKB

In our previous newsflash we referred to the expanded BMKB scheme which became effective on the 16th of March 2020.

Banks can register with both expanded credit schemes (BMKB and GO financing) with RVO. Entrepreneurs report this to their lender. View the list of financiers using the BMKB.

Temporary guarantee for agricultural companies

For agricultural companies, a temporary guarantee for working capital will be introduced under the Guarantee Credit for Agriculture (BL) scheme. By means of this scheme, the government guarantees the credits of agricultural entrepreneurs. This expanded regulation will enter into force as soon as possible. The final date for the entry into force of this scheme is still unknown.

Sector specific compensation schemes

For a number of specific sectors, a sector-specific compensation scheme will be developed in the coming period. This concerns, for example, hotels, restaurants, bars and the travel industry. The compensation schemes are currently being prepared as a matter of urgency and will upon completion be urgently submitted to the European Commission for the assessment of (permissible) state aid. As soon as there is more information about these schemes and the respective effective date(s), we will of course inform you.

To finalize, a number of other measures were announced which include:

  • temporary arrangement for compensation for wage costs
  • Extra support for independent entrepreneurs
  • flexible deferral of tax and reduction of fines
  • Interest discount for small entrepreneurs on microcredit Qredits
  • Consultation on tourist tax and culture sector

The banking & finance team of Ploum can advise you on how you and your organization can make use of the various available governmental schemes. In addition, we can guide and assist you in identifying the consequences the Coronavirus may have for your existing finance arrangements and the related next steps, e.g. adjusting your existing credit facilities, entering into a bridge financing or refinancing. If needed we can assist you in conversations with your existing financiers.

We will keep you regularly informed of further developments that may be relevant in the context of financing and liquidity.

For questions or information, please contact Matthijs Bolkenstein or Lucas Lustermans

Matthijs Bolkenstein                                  Lucas Lustermans

+31 6 4663 0866                                         +31 6 1985 0096

m.bolkenstein@ploum.nl                         l.lustermans@ploum.nl