Eurofound's EU PolicyWatch collates information on the responses of government and social partners to the COVID-19 crisis, the war in Ukraine, rising inflation, as well as gathering examples of company practices aimed at mitigating the social and economic impacts.
Factsheet for measure CZ-2020-19/898 – Updated – measures in Czechia
Country | Czechia , applies nationwide |
Time period | Temporary, 05 May 2020 – 30 June 2021 |
Context | COVID-19 |
Type | Legislations or other statutory regulations |
Category |
Supporting businesses to stay afloat
– Access to finance |
Author | Soňa Veverková (Research Institute for Labour and Social Affairs) and Eurofound |
Measure added | 01 July 2020 (updated 28 May 2022) |
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) and not more than CZK 2,000,000,000 (€74,794,315). 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:
The following updates to this measure have been made after it came into effect.
27 January 2021 |
The programme has been prolonged until 30 June 2021. |
As of 15 March 2020, 75 applications were approved with the total amount of CZK 12,500,000,000 (€479,202,607). Most of the applications approved are from companies in the manufacturing industry.
As of 31 May 2021, 104 applications were approved with the total amount of CZK 15,229,000,000 (€594,882,812). Most of the applications approved are from companies in the manufacturing industry.
As of 30 November 2021, 126 applications were approved with the total amount of CZK 17,168,000,000 (€686,720,000). Most of the applications approved are still from companies in the manufacturing industry.
As of 15 February 2022, 137 applications were approved with the total amount of CZK 17,844,000,000 (€723,454,287). Most of the applications approved are still from companies in the manufacturing industry.
Workers | Businesses | Citizens |
---|---|---|
Does not apply to workers |
Larger corporations
Importing/Exporting companies |
Does not apply to citizens |
Actors | Funding |
---|---|
National government
Company / Companies |
Companies
National funds |
Social partners' role in designing the measure and form of involvement:
Trade unions | Employers' organisations | |
---|---|---|
Role | Consulted | Consulted |
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.
This case is sector-specific
This case is not occupation-specific.
Citation
Eurofound (2020), COVID Plus guarantee for loans to export-oriented large companies, measure CZ-2020-19/898 (measures in Czechia), EU PolicyWatch, Dublin, https://static.eurofound.europa.eu/covid19db/cases/CZ-2020-19_898.html
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