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COVID-19 - Impact on Financial Sector - 28 April 2020

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28/04/2020

Please find below a summary of COVID-19 developments relevant to our clients; 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
t.vandyck@liedekerke.com

Freya Mareels 
+32 475 25 11 50
f.mareels@liedekerke.com

Wim Dedecker
+32 491 36 03 99
w.dedecker@liedekerke.com

 

27/04/2020

Febelfin has set up a tool allowing businesses to enter their expected income and costs for the coming months and therefore calculate their need for liquidity

In compliance with the Royal Decree of 14 April 2020, the federal government has pledged EUR 50 billion as part of a state guarantee scheme to cover losses incurred by the financial sector in connection with new loans made available to businesses in response to the crisis.

In this context, Febelfin has created a tool allowing businesses to enter their expected income and costs for the coming months and therefore calculate their need for liquidity.

     
28/04/2020

ECB April 2020 euro area bank lending survey

The April 2020 bank lending survey of the ECB sets out the following findings for the first quarter of 2020 :

  • Credit standards – i.e. banks’ internal guidelines or loan approval criteria – tightened for loans to enterprises, loans to households for house purchase and consumer credit and other lending to households
  • Banks’ overall terms and conditions – i.e. the actual terms and conditions agreed in loan contracts – tightened for new loans to enterprises, on account of wider loan margins, collateral requirements and other terms and conditions
  • Firms’ demand for loans or drawing of credit lines surged, on account of their emergency liquidity needs in the context of the coronavirus pandemic
  • Bank’s lending conditions eased thanks to the ECB’s targeted longer-term refinancing operations
  • ECB’s asset purchases support banks’ liquidity positions and market financing conditions


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