Banks’ support to businesses increases to over 11 billion euros in loans

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 143,000 entrepreneurs and over 28,000 consumers. A total of 11 billion euros has been made available (an increase from 7 billion two weeks ago, and 5.4 billion four 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).

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So far over 129,000 companies have received a postponement of loan repayments from their bank: totalling 2.8 billion euros. In addition, over 14.000 businesses received a larger credit, with a combined value of 8.6 billion euros. From these loans, 3050 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: “The numbers on the support offered by banks are constantly developing. Despite the easing of the measures taken by the Dutch government in reaction to the corona crisis, many businesses still urgently need help. I have noticed a strong commitment by the banks to do their utmost to help businesses.”

Banks notice that recently the number of funding applications is slowly decreasing. At a later point in the crisis, this might increase again. Buijnk: “Many businesses have some financial space due do the postponements of loan repayments, the measures by government and the postponements of tax payments. They seem to be waiting before applying for new loans.”

The total financing sum is expected to increase in the short term, especially since the government has announced the Small Credits for Corona guarantee scheme (KKC): a scheme for granting smaller loans of up to 50.000 euros: This arrangement was made available as an initiative to which the banks contributed. This measure is now pending approval by the European Commission. All parties aim for the guarantee scheme to enter into force by the end of the month.

The Corporate Finance Guarantee (GO-C) scheme for larger SMEs and businesses has been operational as of two weeks. Furthermore, the government has made important changes to the SME credit guarantee scheme (BMKB), including an extension of the maturity of loans up to four years.

Consumers

Over 18,000 consumers have received a pause for their mortgage payment so far. In most cases this concerns a payment break of one to three months. The same applies for personal loans of around 10,000 households. This totals a combined value of 72 million euros. A payment break is not the only means by which banks offer private customers leniency. Other possibilities are makign adaptions to the product or arrangement on the payment schedule. Banks will each time take the individual situation into account.

Payment transactions

In the recent weeks, the total payment transactions that were made through debit card and iDEAL (the online debit card payment system) have increasing somewhat: with over 4 billion euros on a weekly basis. These payments decreased with 20% in the weeks after the corona crisis started (between week 9 to 13). The increase can be explained by people shopping online using iDEAL.

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NVB.nl/ corona