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Reconfinement: the repayment of loans guaranteed by the State postponed to 2022



Posted on Oct 29, 2020 at 7:23 PMUpdated Oct 29, 2020, 7:25 PM

Whatever it costs, episode 2. The day after Emmanuel Macron’s announcement of a partial reconfinement of the country, the government unveiled new support measures for businesses and businesses weakened by the crisis.

In addition to an increase in the envelope of the solidarity fund and new exemptions from social contributions, the Minister of the Economy and Finance, Bruno Le Maire, thus sanctioned the postponement of the repayment of loans guaranteed by the State (PGE) , distributed since March by banks.

Until now, the first installments were supposed to start one year after the signing of the EMP, with the possibility of spreading payments over a maximum of five years. ” All companies wishing to do so can now ask their bank to defer the first repayments of their loans for one year. », Declared Bruno Le Maire, Thursday, during a press conference. The deadlines could therefore begin in 2022, instead of 2021.

The term of the loan does not change

In mid-October, Bercy had already announced the six-month extension of the EMP system, which was initially due to end on December 31, 2020. To date, nearly 600,000 companies have taken out these guaranteed loans, of which nearly 90% are TPE. , for an amount of 123 billion euros.

The measure had been under debate for several days with the French Banking Federation (FBF), but also with the European Commission, and the Bank of France. The latter has also given its agreement not to recognize these deferred repayments as credit defaults, said Bruno Le Maire. This is a key aspect for banks which, otherwise, would have had to recognize these loans as losses.

This one-year delay in the first installments does not, however, extend the amortization period of the EMPs, which remains fixed at six years maximum. During this second blank year, only the interest and the State guarantee will be paid by the borrower. ” The banking profession undertakes to offer in a personalized way the amortization methods that best correspond to the customer’s situation and his needs. », Commented Thursday the FBF.

In March, the banks committed to granting these loans to ” cost price “, With a rate” close to 0% for the first year, increased by the guarantee premium “.

Along with the announcements on the EMP, Bercy recalled that the most fragile companies which did not succeed in obtaining credit could turn to the State, and its direct loan system, with sums of between 10,000 and 50,000 euros. ” No business should face a cash flow problem because of this crisis », Undertakes the Minister.

The moratoriums in question

It remains to be seen whether the moratoriums on repayments of conventional bank loans will also be renewed with the reconfinement. In March, it was the other flagship measure to support businesses, with the EMP. It had allowed around 2 million businesses to postpone their repayments by six months. Payments were expected to resume in October.

To date, this system has been extended by six months for the tourism and hotel sector only. It nevertheless makes discussions between the government, the banks, but also the European Banking Authority (EBA), which sets the regulatory framework. ” All topics are being discussed », Confides a source familiar with the matter.

These emergency measures do not call into question the quasi-equity system announced by the government with the support of the financial center (banks, investors, funds) as part of the recovery plan. It should make it possible to inject at least 20 billion euros into the balance sheets of SMEs and mid-cap companies which had to go into debt during the crisis. The first loans could be granted in early 2021, but the device still requires the approval of Brussels. ” I had an interview yesterday with Margrethe Vestager of the European Commission to take stock with her on this subject and ask for her support », Indicated the minister.

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