Government measures in key jurisdictions 4th edition - Flipbook - Page 10
Belgium
Contributor: Monard Law
Loans and
financial
support
Has the
government put in
place any new
bank funding
schemes?
•
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, bridge guarantees and other measures oriented to support specific
sectors or SMEs. Since the semi-lockdown has been coming to an end, there have been several
extra “re-launch” grants provided for enterprises.
•
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. Recently, a new additional state guarantee scheme has been
implemented for new loans with a term of more 12 months and a maximum of 36 months. This
guarantee can be granted from 24 July 2020 until 31 December 2020. For more details on this topic,
please refer to our Corona Desk website.
•
The sectoral organization of insurance companies active on the Belgian market has committed itself to
continue the coverage of the collective insurances taken out by the employer without any further
formalities. The payment of the premiums by the employer is postponed until 30 September 2020.
•
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 (to be applied for before 15 November 2020), as well as extend guarantees for up to 75% of the
company’s commitments. The repayment of following loans: start-up loans ‘startlening’, the so-called
‘Co-financiering’ and ‘Co-financiering +’ are deferred for 6 months. In addition, enterprises with a
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 for a maximum duration of 2 years. The Brussels’ microcredit has been strengthened in
order to boost cash-flow in general under the project “Lening BRUSOC Recover”. 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 anddeferrals).
Employment
What financial
support is
the government
providing to
businesses and to
individuals on
employment
issues?
10
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
•
•
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.
The conditions and modalities of for “temporary unemployment”, (“tijdelijke
werkloosheid”, “chômage temporaire”) were considerably restricted since the beginning of the
Covid-19 crisis. As of 1 September, only companies who still have to remain closed (such as
nightclubs) and companies who are open, but have suffered exceptionally from the corona crisis (i.e.
having declared at least 20% days of temporary unemployment to the authorities during the second
quarter of 2020), can still rely on the simplified temporary unemployment procedure. Other
companies are now subject again to the “normal” rules on temporary unemployment.
Government measures in key jurisdictions