France is strengthening its financial assistance measures for companies in difficulty

Published on : 14/01/2021 – 20:24

The French Minister of the Economy Bruno Le Maire presented on Thursday a new section of economic aid to companies which are particularly suffering from the continuing health crisis of Covid-19. The repayment of loans guaranteed by the State may also be deferred for one year.

After the announcement of the generalization of the curfew at 6 p.m. on the whole of the metropolitan territory by Prime Minister Jean Castex, the Minister of the Economy Bruno Le Maire presented a series of new measures to help companies particularly affected by the health crisis.

Companies will now have the right to benefit from their bank for an additional year to start repaying state guaranteed loans (PGE), subscribed to face the crisis. By setting up the EMP at the start of the health crisis, the state had introduced a one-year period before banks could demand repayment of loans. This deadline was therefore due to expire at the end of March for some companies, while many of them are still experiencing financial difficulties.

Regarding other bank loans, Bruno Le Maire announced that “ the banks have undertaken to give favorable consideration to any request for a moratorium or extension of deadline for the companies which are most affected by the crisis, on a personalized basis ».

The Minister of the Economy also assured that the fixed costs of businesses closed because of the Covid-19 epidemic and those of the sectors linked to them, achieving more than a million euros in turnover. business per month, will be supported at 70%. This ” exceptional help “Will be added to aid from the solidarity fund and is currently capped at three million euros over the period from January to June 2021, he said.

Measures for large structures

He indicated that this limit of three million euros was a ” starting point »And resulting from negotiations with the European Commission which will continue. The Minister of the Economy explained that this new measure was aimed at “ important structures “Like hotel chains,” restaurateurs who have several restaurants in the same city “, the ” indoor activities »Such as bowling alleys or sports halls.

For smaller businesses, “ we are going to work with parliamentarians on the best ways to lower this threshold of one million euros which I know may be penalizing for a certain number of very specific small structures “, Further detailed Bruno Le Maire.

He also announced that the Solidarity Fund for companies indirectly affected by administrative closures linked to the fight against the Covid-19 pandemic (related sectors), until now limited to 10,000 euros per month, was increased from from last December to a compensation of 20% of the turnover, within the limit of 200,000 euros, if they have lost 70% of their turnover.

In total, these new measures are expected to cost the state an additional four billion euros per month.

(With AFP)


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