To help companies during the corona crisis, the federal government has agreed with the banks on a 50 billion euro “bazooka” of loan guarantees. However, only two billion euros have been used so far. The banks prefer more expensive loan formulas, reported the newspaper “De Standaard” on Tuesday.
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The federal government has activated a guarantee program worth 50 billion euros for all new loans and credit lines with a term of up to 12 months that banks give to healthy non-financial companies and the self-employed. However, only two billion euros were used. The reason: According to “De Standaard”, this happens mainly because the loans, the risk of which is 80 percent guaranteed by the government, are subject to strict rules.
Danny Van Assche of the Flemish self-employment organization Unizo says that SMEs report that banks are offering them alternative credit formulas instead. They often ask for other guarantees, such as a mortgage. He called for banks to play their full role in supporting companies during the crisis. “They have instruments for that,” says Van Assche.
The Febelfin banking association admitted that the system has so far been little used. “But that can still change. This ‘bazooka’ cannot be used to finance an expiring moratorium. It has to be new money. When the ‘reconstruction’ begins, the demand will increase ”, says Karel Baert, CEO of Febelfin. (belga / mv)
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