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Print articleCOVID-19: Guarantees for Bank Loans and Loan Interest Bonifications as Financial Aid to SMEs Extraordinary Measures in Financial Market Supervision
April, 2020 - Simona Halakova, Miroslav Zatko
Guarantees for bank loans and loan interest bonifications were introduced as afinancial aid to small and medium-sized enterprises (“SMEs”) to be provided by the state under Act on certain extraordinary measures in the area of finance in relation to the spread of dangerous contagious human disease COVID-19 that was adopted by the National Council of the Slovak Republic on 2 April 2020 (the “Act”).
The Act stipulates,inter alia, the conditions for providing financial aid to SMEs by the Ministry of Finance of the Slovak Republic in order to help maintain operations and employment in SMEs during the adverse period caused by the coronavirus SARS-CoV-2 pandemic.
The Act also stipulates certain extraordinary measures in the financial market supervision.
A. GUARANTEES FOR BANK LOANS AND LOAN INTEREST BONIFICATIONS AS FINANCIAL AID FOR SUPPORT OF MAINTENANCE OF OPERATION IN SMEs
The financial aid under the Act can be provided to SMEs in the form of:
• a guarantee for the bank loan provided to the SME by the Bank (as defined below) (the “guarantee”); and/or
• a repayment of an interest on the loan provided to the SME by the Bank (the “interest bonification”).
The Act does not exclude the provision of both forms of the financial aid simultaneously in relation to the same bank loan of the SME.
You can read more in the article prepared by Simona Halakova and Miroslav Zatko of our Banking & Finance team based on the finally adopted text of the Act, as published by the National Council of the Slovak Republic.
Full version of article you can findin attached PDF document.
