Factsheet for case CZ-2020-19/898 – measures in Czechia
|Country||Czechia , applies nationwide|
|Time period||Temporary, started on 05 May 2020|
|Type||Legislations or other statutory regulations|
Supporting businesses to stay afloat
– Access to finance
|Author||Soňa Veverková (Research Institute for Labour and Social Affairs) and Eurofound|
|Case created||01 July 2020 (updated 11 January 2021)|
COVID Plus guarantee provides guarantees for loans to export-oriented large companies with more than 250 employees.The programme is sponsored by the Ministry of Finance of the Czech Republic (Ministerstvo financí České republiky, MF ČR together with the Ministry of Industry and Trade of the Czech Republic (Ministerstvo průmyslu a obchodu České republiky, MPO ČR and managed by Exportní garanční a pojišťovací společnost, a.s. (Export Guarantee and Insurance Company, EGAP).
The programme helps maintain the liquidity to export companies and is not intended for companies which were in existential difficulties before the state of emergency was declared (12 March 2020). Total amount of the programme is CZK 4,000,000,000 (€149,588,631). Companies negotiate the loans directly with a commercial bank.
The programme is eligible for companies, which:
The maximum amount of the loan is 25% of total annual sales of products and services in 2019, but not less than CZK 5,000,000 (€186,986 approx.) and not more than CZK 2,000,000,000 (€ 74,794,315 approx.). EGAP will cover the principal of the loan up to 80%.
The guarantee can also provided for loans used for operations, working capital, refinancing or restructuring of a current loan or investment. Guarantee period is:
As of 15 December 2020, 49 applications were approved with the total amount of CZK 6,866,159,229 (€254,302,193 approx.). Most of the applications approved are from companies in manufacturing industry.
|Does not apply to workers||
|Does not apply to citizens|
Company / Companies
Social partners' role in designing the measure and form of involvement:
|Trade unions||Employers' organisations|
|Form||Consultation through tripartite or bipartite social dialogue bodies||Consultation through tripartite or bipartite social dialogue bodies|
Social partners' role in the implementation, monitoring and assessment phase:
Social partners, which are members of the tripartite body (Council of economic and social agreement, Rada hospodářské a sociální dohody, RHSD) were informed and consulted in both formal (requested by institutional settings) and informal ways. They are not involved in the management of policy measures.
Social partners are supportive to the help to exporters, however, don't consider it as sufficient.
|Economic area||Sector (NACE level 2)|
|A - Agriculture, Forestry And Fishing||A1 Crop and animal production, hunting and related service activities|
|A2 Forestry and logging|
|A3 Fishing and aquaculture|
|B - Mining And Quarrying||B5 Mining of coal and lignite|
|B6 Extraction of crude petroleum and natural gas|
|B7 Mining of metal ores|
|B8 Other mining and quarrying|
|B9 Mining support service activities|
|C - Manufacturing||C10 Manufacture of food products|
|C11 Manufacture of beverages|
|C12 Manufacture of tobacco products|
|C13 Manufacture of textiles|
|C14 Manufacture of wearing apparel|
|C15 Manufacture of leather and related products|
|C16 Manufacture of wood and of products of wood and cork, except furniture; manufacture of articles of straw and plaiting materials|
|C17 Manufacture of paper and paper products|
|C18 Printing and reproduction of recorded media|
|C19 Manufacture of coke and refined petroleum products|
|C20 Manufacture of chemicals and chemical products|
|C21 Manufacture of basic pharmaceutical products and pharmaceutical preparations|
This case is not occupation-specific.
Eurofound (2020), COVID Plus guarantee for loans to export-oriented large companies, case CZ-2020-19/898 (measures in Czechia), COVID-19 EU PolicyWatch, Dublin, http://eurofound.link/covid19eupolicywatch
Disclaimer: This information has not been subject to the full Eurofound evaluation, editorial and publication process. All information is preliminary and subject to change.