Lending to businesses by Dutch banks increased almost four billion euros last month
The vast majority of the 64 billion euros concerns regular bank financing to companies. This has remained stable despite the corona crisis. 3.7 billion euros have been provided with a guarantee by the government, such as the SME Credit Guarantee Scheme (BMKB-C), the Corporate Finance Guarantee (GO-C), the Credit Guarantee Scheme for Agriculture (BL-C) and the Small Credits for Corona guarantee scheme (KKC). Almost 8600 companies have received a loan with a government guarantee.
“Banks are pleased to see that total credit provided continues to increase month by month, as this enables companies and entrepreneurs to continue to invest,” says NVB Chair Medy van Der Laan. The economic recovery appears to have started in the sectors affected by the lockdown measures. The Dutch government has therefore decided to end the generic support measures as of 1 October. “It is good that the Dutch government continues to look at whether specific sectors would still need support. Banks are mindful of the financial problems that a limited number of entrepreneurs could still face due to the terminating support measures. We will look carefully at whether, and how, we can best solve these issues.”
Last year, 129,000 companies received a postponement of loan repayments from their bank, totalling 3.1 billion euros. This concerns the general payment break which was initiated by banks shortly after the start of the corona crisis early last year. In total, 67.1 billion euros has been made available for almost 200,000 entrepreneurs through the postponement of repayments and the provision of additional credit to companies. A loan repayment break can still be provided on a case-by-case basis.
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