Home » Economy » Repayment period for state-guaranteed loans extended to ten years January 19, 2022
It was previously set at six years. The companies most in difficulty will also be able to choose to postpone their reimbursements.
A breath of fresh air for some companies. This Wednesday will be signed an agreement allowing the companies most in difficulty to postpone or spread over ten years the repayment of their loan guaranteed by the State (PGE), contracted on the occasion of the pandemic.
“Today is an important decision. (…) We are going to sign with the Governor of the Banque de France and the French Banking Federation an agreement on the possibility of deferring the repayment of its loan guaranteed by the State, and of spreading the repayment, which was fixed at six years , you can extend it up to 10 years for those who are most in difficulty“said Bruno Le Maire on RMC / BFMTV this Wednesday morning.
On the possibility of a postponement, the Minister of the Economy specified that the deadline of next April could be postponed by “six months“. These measures are notautomatic steps“, wanted to underline the tenant of Bercy. Applicants must “to provewith Credit Mediation that they are unable to repay immediately and that they have “development prospects“. In total, nearly 700,000 companies have contracted a PGE since March 2020, for a total outstanding amount of 143 billion euros.
These relaxations are in addition to the aid already put in place for the sectors hard hit by the fifth wave and the Omicron variant, such as hotels and restaurants, caterers, events or even travel agencies. To the 100% coverage of partial unemployment for companies having lost at least 65% of their turnover, and of their fixed costs from a loss of 50%, a new measure was added on Tuesday , announced by Jean Castex: coverage of payroll up to 20% from 30% loss of turnover.