State Guaranteed Loans Should Help Businesses Struggling With Coronavirus Crisis

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Parliament has adopted measures to help businesses.

All types of businesses will be able to apply for state-guaranteed financial assistance during the coronavirus crisis.

This stems from the bill on certain exceptional measures in the financial field related to the spread of COVID-19, adopted by Parliament on May 13 under an accelerated procedure. The bill was supported by 110 MPs, while one was against and 29 abstained from voting, the SITA newswire reported.

The financial aid should help companies obtain sufficient liquidity, the finance ministry said, as the TASR news wire reported.

The assistance will take the form of a bank credit guarantee or a discount of guarantee commission for a bank loan. Financial assistance will be provided by Eximbanka and funds managed by the state-owned Slovak Investment Holding (SIH).

“Financial mediators will be banks and branches of foreign banks,” the finance ministry wrote in the explanatory memorandum, cited by TASR.

Conditions

Related articleBusinesses can apply for help from Monday Read more

Businesses will need to meet certain conditions to receive assistance.

– The candidates cannot have premium debts paid into the state social insurance fund Sociálna Poisťovňa or health insurers.

– Companies in full swing bankruptcy or restructuring proceedings can not apply for help.

– It will be possible to waive the guarantee fee for a bank loan only if the company maintains employment during the period fixed in the agreement on the respective loan signed with the bank.

Financial assistance in both forms must be provided until December 31, 2020. The full rules for providing this aid will be part of the state aid scheme to be notified by the European Commission.

14. May 2020 at 13:14 | Compiled by spectator staff


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