Government measures in key jurisdictions 2nd edition final pages - Flipbook - Page 34
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 35
percent in the period 9 March 2020 until 8 July 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 with
maximum 25 employees. In order to apply for compensation under this scheme, a
number of conditions must be met. The compensation will amount to 90 per cent
of the expected revenue loss in the period compared to the average revenue in the
last financial year, however, for self-employed and freelances who are forced to close
down, the compensation will amount to 100 per cent. In any event, 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. This compensation scheme is currently available until 8 July 2020,
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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.
•
Additionally, the Danish Travel Guarantee Fund has established a new guarantee
scheme, which allows affected tour operators to cover cancelled package trips in
order to be able to repay customers.
•
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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