Government measures in key jurisdictions 2nd edition final pages - Flipbook - Page 10
Belgium
Pieter Van den Broeck | Pieter.VandenBroeck@monardlaw.be | +32 (0)3/286 79 40
Ava Tu | ava.tu@monardlaw.be | +32 (0)2/234 67 10
Contributor: Monard Law
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Loans and
financial
support
Has the
government put
in place any new
bank funding
schemes?
2
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Employment
What financial
support is the
government
providing to
businesses and
to individuals
on employment
issues?
•
In Belgium, the federal and regional governments have put in place numerous
financial support measures. Such measures include one-off compensation to
enterprises which are required to temporarily close down (such as the hotels and
restaurants), deferral payment of bank loans, government guarantees, and other
measures oriented to support specific sectors or SMEs.
•
At the federal level, the federal government decided to allow a deferral of payment
for existing credits, including mortgages for households and corporate loans for
viable non-financial enterprises, SMEs, self-employed persons and non-profit
organizations. The deferral can be requested for a maximum period of 6 months
for payments due (ending on 31 October 2020). In addition, in respect of new loans
granted between 1 April 2020 and 30 September 2020 for a maximum term of one
year, the federal government provides guarantees and undertakes sharing of losses
with the financial sector. For more details on this topic, please refer to our Corona
Desk website.
•
At the regional level, in Flanders, the coverage of PMV (Flemish corona crisis guarantee)
has been extended. PMV can now also grant medium-term subordinated loans to
healthy SMEs for a term of 3 years. The repayment of following loans: start-up loans
‘startlening’, the so-called ‘Co-financiering’ and ‘Co-financiering +’ can be automatically
deferred for 3 months. In addition, enterprises with government grant can also request
extension of deadlines with VLAIO (the Flanders Innovation and Entrepreneurship).
•
In the Brussels-Capital Region, the enterprises can request loans with reduced interest
rate from Finance and Invest Brussels. Emergency loan start-up investment fund can
provide loans for cultural and creative enterprises. In addition, Brussels Waarborgfonds
(Brussels guarantee fund) also can provide guarantees on bank loans.
•
In the Walloon Region, there are also similar support measures provided by SRIW,
SOWALFIN and Groep SOGEPA (guarantees, loans and deferrals).
•
Following the easing of the quarantine rules, many employees are now able to
return to work. Teleworking and/or social distancing remain nonetheless highly
recommended. If both are practically impossible, the employer is obliged to foresee
adequate preventive measures, such as disinfectants, masks and gloves.
•
Some companies, such as restaurants and bars, remain closed. In such cases,
employees can apply for “temporary unemployment”, (“tijdelijke werkloosheid”,
“chômage temporaire”). Temporary unemployment can also be invoked, for
instance, if the company suddenly has insufficient work for its employees, if an
employee is not able to find childcare for his/her children, or if an employee has
been put in quarantine abroad. In addition to a very flexible scope of application,
the Belgian authorities have also significantly eased the application procedure. The
employee will receive an allowance of 70% of his average salary (capped), and the
government will grant a supplement of 5.63 euro per day.
•
Self-employed persons can rely on a “bridging right” (“overbruggingsrecht”, “droit
passerelle”), which has also been made more flexible in the context of the COVID-19
crisis. Are eligible: self-employed who are obliged to cease their activities (in whole
or in part) or self-employed who are practically forced to cease their activities for
at least 7 consecutive calendar days. The monthly allowance amounts to 1,291.69
euro without family charge and 1,614.10 euro with family charge. The authorities also
Government measures in key jurisdictions
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