Government measures in key jurisdictions 4th edition - Flipbook - Page 37
Czech Republic
Contributor: JSK
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.
•
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 October.
•
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.
•
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 was suspended until the end of August 2020.
•
Extraordinary moratorium could have been requested by debtors, until the end of August 2020.
•
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
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
Has the government
made any changes
to insolvency
legislation?
Contractual
Issues
What measures
have been taken
to reinforce
contracts?
37
Roman Kramaík | roman.kramarik@jsk.cz | +420 226 227 611
Tomáš Doleil | tomas.dolezil@jsk.cz | +420 226 227 611
Government measures in key jurisdictions