Home > News > COVID-19 - Impact on Financial Sector - 7 April 2020
Print pageprint Stay Informedprint

NEWS

COVID-19 - Impact on Financial Sector - 7 April 2020

calendar_new
07/04/2020

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

 

6/04/2020

Coronavirus: Commission and European Investment Fund (part of EIB Group) unlock €8 billion in finance for 100,000 small and medium-sized businesses

The European Commission has unlocked €1 billion from the European Fund for Strategic Investments (EFSI) that will serve as a guarantee to the European Investment Fund (EIF), part of the European Investment Bank Group. This will allow the EIF to issue special guarantees to incentivise banks and other lenders to provide liquidity to at least 100,000 European SMEs and small mid-cap companies hit by the economic impact of the coronavirus pandemic, for an estimated available financing of €8 billion.

6/04/2020

EIF call for expression of interest to financial intermediaries to apply for EFSI Guarantee

 

The EFSI guarantees will be offered through the EIF to the market, via a call for expressions of interest to several hundred financial intermediaries, comprising banks and alternative lenders. Key features of these guarantees will be: 

  • Simplified and quicker access to the EIF guarantee;
  • A higher risk cover – up to 80% of potential losses on individual loans (as opposed to the standard 50%);
  • Focus on working capital loans across the EU;
  • Allowing for more flexible terms, including postponement, rescheduling or payment.


Following the call for expression of interest, financial intermediaries with existing EIF agreements under the COSME and InnovFin programs will be able to access the new guarantees immediately upon their request. Other financial intermediaries can access the guarantees following a swift application process. The deadline for application has been set to 30 June 2020. SMEs will be able to apply directly to their local banks and lenders participating in the scheme, which will be listed on www.access2finance.eu.


Copyright - Please do not quote without permission. Please note that this alert is not a legal advice.