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COVID-19 - Impact on Financial Sector - 22 july 2020


Please find below a summary of  COVID-19 developments of last week (13/7 until 17/7 included); these alerts are dedicated to following up on the financial  regulators’ responses to the crisis. We have also created a COVID-19 Resource Center to offer legal and business insights as this crisis continues to evolve. We wish you and your loved ones well.

If you have any questions please feel free to contact: 

Tom Van Dyck
+32 475 90 90 91 

Freya Mareels 
+32 475 25 11 50

Wim Dedecker
+32 491 36 03 99



Federal SME-guarantee of EUR 10 billion definitively approved


The plenary session unanimously gave the green light to the EUR 10 billion federal SME guarantee. The guarantee is intended to guarantee SMEs access to credit. The payment deferral for mortgage and business loans will also be extended until the end of this year.

The new SME section (for companies with up to 250 employees) of the federal guarantee scheme guarantees EUR 10 billion of SME loans with a duration of 12 to 36 months. Credits granted until the end of this year will be able to benefit from the SME guarantee scheme. More SMEs will also be able to benefit from the guarantee scheme than provided for in the guarantee scheme developed in March. At the beginning of this week, the European Commission gave the green light for the federal SME guarantee scheme.

The EUR 10 billion federal SME guarantee scheme will make use of the existing EUR 50 billion envelope for the federal guarantee scheme.

The payment deferral for mortgage and business loans will also be extended until the end of this year. Families and businesses that have already received a postponement of payment from their bank and still meet the conditions can turn to their bank for further postponement of payment.


Coronavirus Response: Commission welcomes ‘Best Practices' to provide relief for consumers and businesses


The European Commission has welcomed a list of ‘best practices' agreed by the financial sector, and consumer and business organisations, to help further mitigate the impact of the coronavirus pandemic. It sets out concretely how different market participants can support citizens and businesses throughout the crisis.

Today's ‘best practices' cover several issues, including:

  • Payment moratoria for consumer and business loans, and for insurance contributions: these measures can help those facing financial difficulties by deferring payments;
  • Enabling safer cashless payments while ensuring cash payments remain available for those who need them;
  • Ensuring loans aimed at mitigating the impact of coronavirus are provided swiftly, and that the fees and interest rates incurred are fair; and
  • Legitimate insurance claims are processed and paid out as quickly as possible.

Q&As Moratorium and guarantee scheme for credit institutions (updated version of 16 July 2020)


The federal government, the National Bank of Belgium and the Belgian financial sector have agreed on the provision of temporary support for businesses, self-employed persons and households. Individuals experiencing payment problems as a result of the coronavirus crisis may delay their mortgage loan payments.

Sound businesses and self-employed persons can also request postponement of their loan repayments. In their case, two guarantee schemes will also be implemented for new loans and credit lines granted by banks until 31 December 2020.

In addition to these Q&As, reference is made to the charters (in French and in Dutch), as well as to the related Q&As in which banks have set out their commitments concerning the arrangements for postponing payments on mortgages and business loans respectively.

The first guarantee scheme initially guaranteed loans granted until 30 September 2020. An amending Royal Decree is being drafted to extend this period until 31 December 2020. For the purposes of these FAQs, it is assumed that this extension already applies.

1. General (high level principles agreement and background)
2. Moratorium
3. First guarantee scheme
4. Second guarantee scheme
5. Reporting and monitoring
6. Prudential and accounting implications


Version of 16 July 2020