Government measures in key jurisdictions 3rd edition final - Flipbook - Page 40
Roman Kramaík | roman.kramarik@jsk.cz | +420 226 227 611
Tomáš Doleil | tomas.dolezil@jsk.cz | +420 226 227 611
Loans and
financial
support
•
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 Czech Export Guarantee and Insurance Agency (EGAP) to guarantee for bank loans
provided to businesses which employ more than 250 people including companies operating in
transport and tourism sector.
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
•
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.
•
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 repayment), 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. Repayment of the debts may be
suspended either to 31 July or 31 October (on borrowers’ choice).
•
Exorbitant consumer interests were capped.
Has the government
made any changes
to insolvency
legislation?
Contractual
Issues
What measures
have been taken
to reinforce
contracts?
40
•
•
Limited support to employees, who must stay home to take care of children, who can’t attend schools
(applicable to 30 June).
Opt-in support to all affected self-employed people shareholders of small limited liability companies
of about 18 EUR per day for a period from 12 March until 8 June.
Kurzarbeit / furlough: employers may apply for compensation of payroll costs at 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). Aid to be provided until the end of August.
Payments of social security premium and state employment policy contributions for June, July and
August 2020 waived for some employers with up to 50 employees.
Government measures in key jurisdictions