Government measures in key jurisdictions 4th edition - Flipbook - Page 39
Denmark
Camilla Collet | ccc@gorrissenfederspiel.com | +45 33 41 42 09
Contributor: Gorrissen Federspiel
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. Previously, all Danish companies with a
decline in turnover (Danish turnover) of more than 35 percent and of minimum 12.500 DKK in the
period 9 March 2020 until 8 July 2020 due to Covid-19 could apply for compensation for fixed costs.
The compensation scheme has been extended until 31 October 2020 for companies subject to
restrictions, if the company has fixed costs of at least 8,000 DKK during the compensation period. At
the same time, the Danish Government has introduced initiatives to improve the scheme.
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 was originally available to all self-employed and
freelancers from 9 March 2020 until 8 July 2020 but has been extended to 31 October 2020 for selfemployed and freelancers, subject to certain restrictions,
iii. a guarantee scheme to facilitate financing to small, medium-sized and large companies affected by
Covid-19, Under this scheme, the Danish Growth Fund (In Danish: Vækstfonden) provides 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. The scheme is available until 31
October 2020.
Companies utilising the scheme in item (iii) 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. Similarly, special schemes aimed at seasonal companies and organizers of events with
more than 350 participants have been adopted.
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.
Furthermore, the Danish Export Credit Agency has introduced a liquidity guarantee scheme for Danish
exporters impacted by Covid-19. The Danish Export Credit Agency provides a guarantee of 80 percent of
any loss incurred by banks on new lines of credit. The scheme is available until 31 December 2020.
Similarly, the Danish Travel Guarantee Fund has established a 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 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.
Please note that the application of the schemes have been prolonged after the publication of the
newsletters.
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Government measures in key jurisdictions