Banks support businesses with over seven billion euros in loans - Postponement of loan repayments has been extended to loans up to fifty million euros

Since the Corona crisis outbreak in March, the Dutch banks have, in addition to the support package by the government, offered temporary financial relief to over 111,000 entrepreneurs and over 24,000 consumers. A total of 7 billion euros has been made available (an increase from 5.4 billion two weeks ago) through the postponement of repayments and the provision of additional credit to companies. This is shown by the factsheet published today by the Dutch Banking Association (NVB).

Nederlands

Several banks (ABN AMRO, ING, Rabobank and Triodos Bank) have put in place a joint scheme which offers entrepreneurs the possibility for postponing repayments of loans up to 50 million euros. Before, this was only possible for loans up to 2.5 million euros. ABN AMRO already offered clients this possibility. The postponement of loan repayments applies for a maximum of six months, and banks can make this offer to clients until the 30th of June. Large groups of (fundamentally viable) clients fall within the scope of this scheme; larger SMEs as well as large companies. Clients who would like to apply for this postponement can get in touch with their bank.

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So far over 103,000 companies have opted for a six-months postponement of loan repayments: totalling 2.7 billion euros. In addition, over 8.000 businesses received a larger credit, with a combined value of 4.3 billion euros. Almost 2.000 of these loans have been provided with a government guarantee, many of those were made available through the Corona SME credit guarantee scheme (BMKB-C).

Chris Buijink, President of the NVB: “Banks continue their support. That is important because many businesses still urgently need help.” He states that at some point the increase in funding we are still seeing will likely slow down. Banks notice that the number of funding applications is slowly decreasing. It needs to be taken into account that at a later point in the crisis, this might increase again. “Banks are doing their utmost to help businesses that were healthy prior to the corona crisis to get through these times. We do this together with the government and the supervisory authorities. Banks do a lot, but they cannot help everyone unfortunately. This crisis will leave scars.”

The total financing sum is expected to increase, given that the Corporate Finance Guarantee (GO-C) scheme for larger SMEs and businesses has been operational as of last Wednesday. Furthermore, the government has made important changes this week to the SME credit guarantee scheme (BMKB), including an extension of the maturity of loans up to four years. The government and banks are assessing what can be done for the (group of) companies which do not receive enough support under the current schemes. They are particularly looking into the possibility of granting smaller loans of up to 50,000 euros.

Consumers

Over 16,000 consumers have received a pause for their mortgage payment from their bank so far. In most cases this concerns a payment break of one to three months. The same applies to personal loans for around 7,000 households. A payment break is not the only means by which banks offer private customers leniency and banks will each time take the individual situation into account.

Payment transactions

The payment transactions are increasing somewhat. According to the Dutch Payments Association, people go out more often, buy more groceries and shop more online. Especially supermarkets and drugstores notice more card payments. Thuiswinkel.org (the network for e-commerce) stated that online sales at large popular web shops hit a record high last week.