Coronavirus - Government measures in key jurisdictions - Flipbook - Page 32
Denmark
Camilla Collet | ccc@gorrissenfederspiel.com | +45 33 41 42 09
Contributor: Gorrissen Federspiel
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Loans and
financial
support
The Danish government has introduced the following schemes:
(i) a temporary compensation scheme to cover fixed costs of companies, which
are particularly affected by the COVID-19 crisis, financed by the Danish state. All
Danish companies expecting a decline in turnover (Danish turnover) of more than 40
percent in the period 9 March 2020 until 9 June 2020 due to COVID-19 can apply for
compensation for fixed costs,
Has the
government put
in place any new
bank funding
schemes?
(ii) a temporary compensation scheme aimed at self-employed and freelancers. In
order to apply for compensation under this scheme, a number of conditions must
be met. The compensation will amount to 75 per cent of the expected revenue loss
in the period compared to the average revenue in the last financial year. However,
the compensation may not exceed DKK 23,000 per person per month. The
compensation may amount to up to DKK 46,000 per person per month, if the
self-employed has an employee spouse,
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(iii) a guarantee scheme to facilitate financing to small and medium-sized companies
affected by COVID-19, and
(iv) a guarantee scheme to facilitate financing to large companies affected by
COVID-19.
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•
Under the schemes listed in item (iii) and (iv) above, the Danish Growth Fund (In
Danish: Vækstfonden) will provide a guarantee of 70 percent for new bank loans
to companies which have suffered or expect to suffer a turnover loss of at least 30
percent as a result of COVID-19.
•
Furthermore, the Danish Export Credit Agency has introduced a liquidity guarantee
scheme for Danish exporters impacted by COVID-19. This scheme is aimed at small
and medium-sized companies, and the Danish Export Credit Agency will provide a
guarantee of 80 percent of any loss incurred by banks on new lines of credit.
•
A political agreement has been reached regarding the schemes listed in item (i)
and (ii), however, this has not yet been implemented. The political agreement
stipulates that the schemes will be expanded and that they will apply until 8 July
2020. Companies utilising the scheme in item (i) are likely to be covered by certain
restrictions in respect of declaring dividends or initiating share buy-backs for the
financial years 2020 and 2021. We note that in addition to the above, the Danish
government has adopted certain schemes aimed at specific businesses, which are
not covered here.
•
For additional information about the temporary compensation scheme to cover fixed
costs of companies, please view here.
•
For additional information about the temporary compensation scheme aimed at selfemployed and freelancers, please view here.
•
For additional information about the guarantee schemes supported by the Danish
Growth Fund (in Danish), please view here.
Government measures in key jurisdictions
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