Government measures in key jurisdictions 3rd edition final - Flipbook - Page 42
Camilla Collet | ccc@gorrissenfederspiel.com | +45 33 41 42 09
Loans and
financial
support
Has the
government put in
place any new
bank funding
schemes?
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,
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,
iii. a guarantee scheme to facilitate financing to small and medium-sized companies affected by Covid19, and
iv. a guarantee scheme to facilitate financing to large companies affected by Covid-19.
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Companies utilising the scheme in item will be covered by certain restrictions in respect of declaring
dividends or initiating share buybacks 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. The Danish government has on 20 May adopted guidelines
for a quick and safe payment of the compensation schemes listed in items (i) and (ii). To ensure a
quick payment of the compensation, the guidelines introduce a fast track-solution for payment,
immediate handling of applications and a solution for applying a digital auditor's statement for
endorsement on applications. To ensure a safe payment of the compensation, the guidelines
introduce a whistleblower-scheme and increased use of external experts.
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.
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. In addition,
the loan granted by the Danish state to businesses within package tours has been increased from DKK
1,5 billion to DKK 2,25 billion.
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 self-employed and
freelancers, please view here.
For additional information about the guarantee schemes supported by the Danish Growth Fund (in
Danish), please view here.
For additional information about the guarantee scheme by the Danish Travel Guarantee Fund see link.
Government measures in key jurisdictions