Banks’ support to businesses increases to 19 billion euros in reaction to corona crisis

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 almost 155,000 entrepreneurs and 32,000 consumers. A total of 19 billion euros has been made available (an increase from 17 billion two weeks ago) through the postponement of repayments and the provision of additional credit to companies. The details are displayed in the factsheet published today by the Dutch Banking Association (NVB).

Nederlands

Over 26,000 businesses have received a larger credit, with a combined value of 15.2 billion euros. From these loans, around 5000 have been provided with a government guarantee - many of those were made available through the Corona SME credit guarantee scheme (BMKB-C). Almost 1.3 billion euros has been made available through the different corona guarantee schemes. So far, almost 129,000 companies have received a postponement of loan repayments from their bank: totalling 3 billion euros. Since mid-May, these numbers remain largely unchanged.

Corona Monitor (pdf)

Chris Buijink, President of the NVB: “Banks are experiencing a certain normalization in their work. Applications for new corona-related financing have been stagnating for some time. This either indicates that businesses do not need a new credit now or that they are waiting to see which way the wind will blow. However, we are aware that we are currently in the eye of the storm; a difficult economic time is expected after the summer. The demand for new credits will most likely increase again later in the crisis. The lower demand for funding applications is also related to the temporary financial relief that businesses have received through the corona measures that have been put in place by the Dutch government, as well as the postponement of repayments and tax payments. All these measures make businesses less inclined to take out new loans at this moment. This is for example the case for the Small Credits for Corona Guarantee Scheme (KKC); SMEs can also make use of a Fixed Costs Allowance (TVL), which helps small businesses in certain sectors to pay their fixed material costs.

Consumers

So far, over 32,000 consumers received a pause for their mortgage payment or personal loan. In most cases this concerns a payment break of one to three months. This totals a combined value of 77 million euros – a slight increase since the last update from two weeks ago. A payment break is not the only means by which banks offer private customers leniency. Other possibilities are making adaptions to the product or an arrangement of the payment schedule. Banks will each time take the specific situation into account.

Payment transactions

The turnover and the number of transactions made with debit card in stores and online with debit (through iDEAL) and credit cards were already higher in the last three weeks than just before the lockdown. Last week, 2% more transactions were made compared to the number of transactions made in week 9 (early March). The turnover has increased with 8% since that time.

The next Corona Monitor will be released on August 7, 2020.

NVB.nl/corona