Posted on Jan 14, 2021 7:15 PM
Faced with the same evils, banks are forced to apply the same remedies. While the health crisis continues, and travel restrictions are tightening, financial institutions have decided to resuscitate a measure that had proven effective last spring: the moratoriums on bank loans.
Companies weakened by the crisis will be able to ask their bank to postpone credit maturities in order to preserve their cash flow and get through the coming months as well as possible, which promise to be still difficult for certain sectors of activity.
The French Banking Federation (FBF) announced Thursday evening, in the wake of government speeches, the implementation of these exceptional measures in all financial institutions. The granting of these moratoriums, the duration of which is not defined, will nevertheless remain at the discretion of the bankers. It will be ” in a personalized way “, for ” companies or professionals still subject to activity restrictions “.
One of the first anti-crisis measures
The moratoriums were one of the first measures put in place by the banking sector, in mid-March, to deal with the difficulties caused by the first lockdown. More than two million companies had used it, which had shifted up to 20 billion euros in reimbursements.
The mechanism had ended six months later, in October, for the majority of its beneficiaries, when economic activity had rebounded. And loan repayments had therefore resumed, without major difficulty, according to the banks. Only companies linked to the tourism sector were entitled to an additional six-month exemption.
” This new wave should not discourage the economic players in our country. We are and will be there to support them. Dialogue with their bankers is essential, commented Philippe Brassac, president of the FBF. The strength of the French relational model lies in being able to seek out all possible solutions with each of our clients. This battle to save our economy will be won. “
Deferred reimbursement of EMPs
Among the devices that have supported the economy since the start of the crisis are also state guaranteed loans (PGE). Also launched in March, they were distributed to 630,000 companies, for a total amount of 130 billion euros.
In the current context, the banks also confirmed Thursday, through the voice of the FBF, their decision to grant a deferral of an additional year for the repayment of the first installments, supposed to begin on the first anniversary of the signing of the loan. Only the interest and the cost of the guarantee will be paid.
Companies that request it will therefore be able to benefit from a total of two blank years, before starting to repay this loan, the maximum duration of which remains six years. Several establishments were already offering it to certain customers. Bercy had campaigned for a systematic agreement.