Government measures in key jurisdictions 5th edition - Flipbook - Page 140
The Netherlands
Contributor: Houthoff
Loans and
financial
support
Has the
government put
in place any new
bank funding
schemes?
140
Thomas de Weerd | t.de.weerd@houthoff.com | +31 20 605 6361
Karim Abass | k.abass@houthoff.com | +31 20 605 6358
•
On April 8 2020, the Dutch government announced that it intends to reinsure supplier
credits for the remainder of 2020. This measure is mostly aimed at helping SME retailers
and catering establishments that make use of supplier credits and which need to provide a
payment insurance to the supplier via a credit insurer. It is estimated that the measure will
cost around EUR 12 billion, resulting into a loss of approximately EUR 1 billion for the Dutch
government. The reinsurance of supplier credit has been extended until 30 June 2021.
•
For the first six months of 2021, all income and costs, including claims, will be divided
between the Dutch government and the insurers, in the ration 90/10. There is no longer a
maximum to the deductible that the insurers bear. Seven insurers have entered into a
reinsurance agreement with the Dutch government.
•
The Dutch government has taken measures to expand export credits in order to keep
international trade flows going. With this support package, businesses can cover more risks
with a state guarantee. This insurance is provided by the Dutch government for
transactions which involve risks that cannot be insured by the capital market. Businesses
may apply to Atradius Dutch State Business for the insurance.
•
An SME Credit Guarantee Scheme is available for small and medium sized enterprises
established in the Netherlands that have substantial activities in the Netherlands (except
for undertakings active in agriculture, fisheries, public health care, insurance and finance,
and real estate). Under the regular scheme, the government guarantees loans to SMEs up
to 50% of the loan provided by the financier. The size of the maximum guarantee has
been increased from 50% to 75% for loans with a maximum amount of EUR 266,667.
For loans of more than EUR 266,667, the guarantee is capped at 50%. In addition,
the maximum loan for which the guarantee applies has been increased from EUR 1 million
to EUR 1.5 million. With effect from 28 April 2020, the term of the credit is extended to four
years. Furthermore, the scheme has become more accessible due to the use of a turnover
test instead of a comprehensive liquidity forecast. The scheme can be used by companies
for bridging loans or to increase their current account credit. The premium for
the Dutch government guarantee has been decreased from 3.9% to 2% for a loan with a
duration of 8 quarters. The premium for a loan with a duration between 9 and 16 quarters
has been decreased to 3%. EUR 30 million has been made available for this measure. The
budget for this scheme has been increased from EUR 765 million to EUR 1.5 billion. The
eligible companies make an application to the accredited financier which is usually a bank.
The accredited financiers can submit an application to the Rijksdienst voor Ondernemend
Nederland. This scheme will continue until 30 June 2022. You can find the eligibility criteria
and the list of accredited financiers here.
•
A scheme is available for SMEs and large companies that are established in the Netherlands
and have substantial activities in the Netherlands (except for undertakings active
in agriculture, fisheries, public health care, insurance and finance, and real estate) and have
satisfactory prospects regarding their internal rate of return and continuity. The Dutch
government helps companies by providing a guarantee on bank loans and bank guarantees.
Under the GO Scheme, the maximum amount of the guarantee to be provided by the Dutch
government to (i) large companies with a minimum turnover of EUR 50 million is 80% of
the related bank loan or bank guarantee; and (ii) SMEs with a maximum turnover of EUR 50
million is 90% of the related bank loan or bank guarantee, provided that the large company
or SME (as the case may be) has been affected by the Covid-19 outbreak. Under the regular
scheme, this applies to loans and guarantees from EUR 1.5 million up to a maximum of EUR
50 million per undertaking. The Dutch government has increased the maximum amount of
any loan or guarantee under the GO Scheme to EUR 150 million per undertaking with a
maximum term of six years. The budget of the GO Scheme has been increased from EUR
400 million to EUR 10 billion. The eligible companies can submit an application to an
accredited financier which is usually a bank. The accredited financiers can submit an
application to the Rijksdienst voor Ondernemend Nederland. The scheme runs until 1 April
2021. You can find the eligibility criteria and the list of accredited financiers via this link.
Government measures in key jurisdictions
