Government measures in key jurisdictions 5th edition - Flipbook - Page 58
Guernsey
Contributor: Mourant
Loans and
financial
support
Has the
government put in
place any new bank
funding schemes?
•
In the first lockdown period, the States of Guernsey agreed to underwrite 80% of
any qualifying loan made by participating banks to any trading business with less
than GBP 10 million turnover. This scheme closed on 31 December 2020 and there is
no suggestion it will be reopened.
•
Businesses regulated by the Guernsey Financial Services Commission
(GFSC) were excluded.
Employment
What
financial support
is the government
providing to
businesses and to
individuals on
employment
issues?
Insolvency
•
The initial payroll co-funding scheme was similar to the UK's and gave employers and
the self-employed in certain sectors co-funding payments where they could show
their turnover had fallen below certain thresholds. This scheme has been reintroduced in respect of the latest lockdown.
•
Other measures to support business include small business grants and the deferral of
Social Insurance contributions, local business rates and rent owed to States entities.
•
There are also measures to support individuals such as a hardship fund.
•
Please follow these links for the most up to date information on financial and business
support:
• Business support and guidance.
• Financial support for individuals.
•
No changes are likely to be made to Guernsey’s insolvency laws, in particular regarding
wrongful trading. It should be noted that Guernsey’s wrongful trading provisions are
somewhat more relaxed than the UK equivalent in any event. Once a director
concludes (or ought to have concluded) that there was no reasonable prospect of the
company avoiding insolvency winding up, the director has a duty to take every step to
minimise losses to creditors “he ought reasonably have taken”. The Guernsey test
introduces a reasonableness qualification on the every step test not expressed in the
UK statute.
•
Significant amendments to the insolvency laws were passed by the States of Guernsey
in January 2020 and are expected to come into effect shortly.
•
Changes to Guernsey’s Insolvency Regime.
Has the
government made
any changes
to insolvency
legislation?
58
Matthew Guthrie | matthew.guthrie@mourant.com | +44 1481 731 424
Abel Lyall | abel.lyall@mourant.com | +44 1481 739 364
Robert Shepherd | robert.shepherd@mourant.com | +44 1481 731 418
Government measures in key jurisdictions
