Government measures in key jurisdictions 5th edition - Flipbook - Page 40
Czech Republic
Contributor: JSK
Loans and
financial
support
•
Yes, three waves of emergency loans have been handed to SMEs (small and medium
enterprises). The first by way of outright government’s bank loans, the second and third
by way of guarantees for loans issued by the commercial banks.
•
The Czech Export Guarantee and Insurance Agency (EGAP) to guarantee for bank
loans provided to businesses which employ more than 250 people including
companies operating in transport and tourism sector.
Has the
government put in
place any new
bank funding
schemes?
Employment
•
What financial
support is the
government
providing to
businesses and
to individuals
on employment
issues?
•
•
•
•
Insolvency
Has the
government made
any changes
to insolvency
legislation?
Contractual
Issues
What measures
have been taken
to reinforce
contracts?
40
HecWdAhWcWarroman.kramarik@jsk.cz | +420 226 227 611
Tomá Dole il | tomas.dolezil@jsk.cz | +420 226 227 611
Kurzarbeit / furlough: employers may apply for compensation of payroll costs at a) 100%
(capped at approx. 1 900 EUR) if their business was mandated to close; b) 80% (capped
at approx. 1 500 EUR) if their employees are quarantined; c) 60%, (capped at approx. 1
000 EUR) if they suffer indirectly (e.g. reduced orders). Aid to be provided until the end
of April 2021.
From March 2021 the compensation will be provided only for the payroll costs of
employees that have been employed by the employer for at least 3 months.
Payments of social security premium and state employment policy contributions for
June, July and August 2020 waived for some employers with up to 50 employees.
The affected self-employed persons are entitled to financial support in the approximate
amount of 40 EUR per one day.
Closed businesses have also been provided with various kinds of financial support to
cover their other costs.
•
The debtor’s duty to file for insolvency (and associated directors’ liability for not
doing so) is suspended. The suspension applies during the Covid-19 response
measures and 6 months after they are terminated, but in no event beyond the end
of June 2021. The claw-back periods are not running during the suspension, so a
longer period will be effectively available for clawing-back assets in future
insolvencies.
•
Creditors’ right to file for insolvency was suspended until the end of August 2020.
•
Extraordinary moratorium can be requested by debtors, until the end of June 2021.
•
NIL.
•
Borrowers could request deferral of their debts, which were falling due (but
interest continued to accrue) and lenders had to grant such deferral.
•
Exorbitant consumer interests were capped.
Government measures in key jurisdictions
