Government measures in key jurisdictions 5th edition - Flipbook - Page 42
Denmark
Camilla Collet | ccc@gorrissenfederspiel.com | +45 33 41 42 09
Contributor: Gorrissen Federspiel
Loans and
financial
support
Has the
government put
in place any new
bank funding
schemes?
The Danish government has introduced the following schemes:
i. a temporary compensation scheme to cover fixed costs of companies, which are
particularly affected by the Covid-19 crisis, financed by the Danish state. Previously,
all Danish companies with a decline in turnover (Danish turnover) of more than 35%
and of minimum 12.500 DKK in the period 9 March 2020 until 8 July 2020 due to
Covid-19 could apply for compensation for fixed costs. The compensation scheme
was extended until 31 October 2020 for companies subject to restrictions, if
the company had fixed costs of at least 8,000 DKK during the compensation period.
The compensation scheme has been further extended to 28 February 2021 and now
applies to companies with a decline in turnover of more than 30% (for some
companies 35%), if the company has fixed costs of at least 4,000 DKK;
ii. a temporary compensation scheme aimed at self-employed and freelancers with
maximum 25 employees. In order to apply for compensation under this scheme, a
number of conditions must be met. The compensation will amount to 90% of the
expected revenue loss (which must be at least 30%) in the period compared to the
average revenue in the last financial year, however, for self-employed and
freelancers who are forced to close down, the compensation will amount to 100%. In
any event, the compensation may not exceed DKK 23,000 per person per month for
each owner with an ownership of 25% or more of the business. This compensation
scheme was originally available to all self-employed and freelancers from 9 March
2020 until 8 July 2020 and was first extended to 31 October 2020 for self-employed
and freelancers, subject to certain restrictions, and is now extended to 28 February
2021; and
iii. a guarantee scheme to facilitate financing to small, medium-sized and large
companies affected by Covid-19, Under this scheme, the Danish Growth Fund (In
Danish: Vækstfonden) provides a guarantee of 80-90% for new bank loans
to companies which have suffered or expect to suffer a turnover loss of at least 30%
as a result of Covid-19. The scheme was first available until 31 December 2020, but
has now been extended until 30 April 2021 (the application deadline is on 24 April
2021).
Companies utilising the scheme in item (iii) will be covered by certain restrictions in
respect of declaring dividends or initiating share buybacks for the financial years 2020
and 2021. We note that in addition to the above, the Danish government has adopted
certain schemes aimed at specific businesses, which are not covered here. Similarly,
special schemes aimed at seasonal companies and organizers of events with more than
350 participants have been adopted.
The Danish government has on 20 May 2020 adopted guidelines for a quick and safe
payment of the compensation schemes listed in items (i) and (ii). To ensure a quick
payment of the compensation, the guidelines introduce a fast track-solution for
payment, immediate handling of applications and a solution for applying a digital
auditor's statement for endorsement on applications. To ensure a safe payment of the
compensation, the guidelines introduce a whistleblower-scheme and increased use of
external experts.
Furthermore, the Danish Export Credit Agency has introduced a liquidity
guarantee scheme for Danish exporters impacted by Covid-19. The Danish Export Credit
Agency provides a guarantee of 80-90% of any loss incurred by banks on new lines of
credit. The scheme is available until 26 April 2021.
Similarly, the Danish Travel Guarantee Fund has established a guarantee scheme, which
allows affected tour operators to cover cancelled package trips in order to be able to
repay customers. The scheme is available until 28 February 2021.
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Government measures in key jurisdictions
