Coronavirus - Government measures in key jurisdictions - Flipbook - Page 30
Czech Republic
Contributor: JSK
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Loans and
financial
support
Has the
government put
in place any new
bank funding
schemes?
Employment
What financial
support is the
government
providing to
businesses and
to individuals
on employment
issues?
Insolvency
•
Yes, three waves of emergency loans have been handed to SMEs (small and medium
enterprises). The first by way of outright government’s bank loans, the second and third
by way of guarantees for loans issued by the commercial banks. The total value was
about 1,1 bn EUR.
•
The Czech Export Guarantee and Insurance Agency (EGAP) is about to get approx. 12
bn EUR for facilities to support the funding of large Czech exporters, which employ
more than 250 people.
•
Limited support to employees, who must stay home to take care of children, who
can’t attend schools.
•
Opt-in support to all affected self-employed people of about 18 EUR per day.
Initially for a period of 50 days.
•
Kurzarbeit / furlough: employers may apply for compensation of payroll costs a)
80% (capped at approx. 1 400 EUR) if their business was mandated to close; 60%,
(capped at approx. 1 000 EUR) if they suffer indirectly (e.g. reduced orders).
•
The debtor’s duty to file for insolvency (and associated directors’ liability for not
doing so) is suspended. The suspension applies during the COVID-19 response
measures and 6 months after they are terminated, but in no event beyond the end
of 2020. The claw-back periods are not running during the suspension, so a longer
period will be effectively available for clawing-back assets in future insolvencies.
Has the
government made
any changes
to insolvency
•
legislation?
Contractual
Issues
What measures
have been taken
to reinforce
contracts?
Roman Kramaík | roman.kramarik@jsk.cz | +420 226 227 611
Tomáš Doleil | tomas.dolezil@jsk.cz | +420 226 227 611
Creditors’ right to file for insolvency is suspended until the end of August 2020.
•
Extraordinary moratorium may be requested by debtors, but requests can be made until
the end of August 2020 only. It would generally stay the enforcement of claims and also
prevent the termination of long-term agreements. New debts can be given priority over
pre-moratorium debts (by way of re-payment), but no provision is made for new security
or priority in insolvency. Set-off would not be permitted during moratorium.
•
NIL.
•
Borrowers can request deferral of their debts, which are falling due (but interest
continues to accrue) and lenders must grant such deferral.
•
Exorbitant consumer interests were capped.
Government measures in key jurisdictions
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