Coronavirus - Government measures in key jurisdictions - Flipbook - Page 77
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The Netherlands
Thomas de Weerd | t.de.weerd@houthoff.com | +31 20 605 6361
Contributor: Houthoff
Loans and
financial
support
Has the
government put
in place any new
bank funding
schemes?
•
On April 8 2020, the Dutch government announced that it intends to reinsure supplier
credits for the remainder of 2020. This measure is mostly aimed at helping SME
retailers and catering establishments that make use of supplier credits and need to
provide an insurance of payment to the supplier via a credit insurer. It is estimated
that the measure will cost around EUR 12 billion, and that the Dutch government will
incur approximately EUR 1 billion in losses. The measure has yet to be worked out in
greater detail and approval of, amongst others, the European Commission is required.
•
Dutch exporters and their banks can take out an export credit insurance with Atradius
Dutch State Business for political and commercial risks that cannot be insured on
the market. Such risks concern, for example, the long duration of the credit. The
government has announced that it will extend export credits which will enable
companies to cover more risks. Applications for different products may be submitted
to Atradius Dutch State Business through the website.
•
An SME Credit Guarantee Scheme is available for small and medium sized enterprises
established in the Netherlands and have substantial activities in the Netherlands
(except for undertakings active in agriculture, fisheries, public health care, insurance
and finance, and real estate).
Under the regular scheme, the government guarantees loans to SMEs up to 50%
of the loan provided by the financier. The size of the maximum guarantee has been
increased from 50% to 75% for loans with a maximum amount of EUR 266,667. For
loans of more than EUR 266,667, the guarantee is capped at 50%. In addition, the
maximum loan for which the guarantee applies has been increased from EUR 1 million
to EUR 1.5 million.
The scheme can be used by companies for bridging loans or to increase their current
account credit for up to two years. With effect from 7 April 2020, the premium for the
government guarantee has been decreased from 3.9% to 2%. Moreover, the budget
for the scheme has been increased to EUR 10 billion.
The eligible companies make an application to the accredited financier which is
usually a bank. The accredited financiers can submit an application to the Rijksdienst
voor Ondernemend Nederland. You can find the eligibility criteria and the list of
accredited financiers here.
•
A scheme is available for SMEs and large companies that are established in
the Netherlands and have substantial activities in the Netherlands (except for
undertakings active in agriculture, fisheries, public health care, insurance and finance,
and real estate).
The government helps companies by providing a guarantee on bank loans and
bank guarantees. Under the GO Scheme, the maximum amount of the guarantee to
be provided by the Dutch government to (i) large companies is 80% of the related
bank loan or bank guarantee; and (ii) SMEs is 90% of the related bank loan or bank
guarantee, provided that the large company or SME (as the case may be) has been
affected by the COVID-19 outbreak.
Under the regular scheme, this applies to loans and guarantees from EUR 1.5 million
up to a maximum of EUR 50 million per undertaking. The Dutch government has
increased the maximum amount of any loan or guarantee under the GO Scheme to
EUR 150 million per undertaking. The budget of the GO Scheme has been increased
from EUR 400 million to EUR 10 billion.
The eligible companies make an application to an accredited financier which is
usually a bank. The accredited financiers can submit an application to the Rijksdienst
voor Ondernemend Nederland. You can find the eligibility criteria and the list of
accredited financiers here.
Government measures in key jurisdictions
77