Factsheet for case CZ-2020-21/894 – measures in Czechia
|Country||Czechia , applies nationwide|
|Time period||Temporary, 18 May 2020 – 30 June 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||29 June 2020 (updated 06 May 2021)|
The COVID III guarantee programme follows the COVID I, COVID II and COVID Prague programmes. The COVID III guarantee programme helps to self-employed and companies with up to 500 employees and affected by the coronavirus. Unlike in COVID I and COVID II, entrepreneurs would no longer apply for a guarantee with Czech-Moravian Guarantee and Development Bank (Českomoravská záruční a rozvojová banka, ČMZRB but negotiate directly with a commercial banks involved in the program (see Sources). This should eliminate a number of administrative and legal difficulties which were criticised in COVID I and COVID II. However, ČMRZB is still a managing authority.
Unlike COVID I and COVID II, COVID III covers also larger companies (up to 500 employees) and is applicable nation-wide, Prague included.
The guarantee will apply for operating loans of up to CZK 50,000,000 (€1,869,858 approx.) that will be provided until 31 December 2020. The guaranteed loan can be used to cover operating expenses, such as wages, rents, energy payments, payment of supplier-customer invoices, acquisition of inventory, materials, etc.
The guarantee is the following:
The length of the guarantee will be at most three years.
The transaction also have to the following criteria:
As of 15 March 2021, commercial banks involved in the programme have approved 4,204 applications (out of the total number of applications 5,891) with the total sum of CZK 28,438,000,000 (€1,090,205,099 approx.).
|Does not apply to workers||
One person or microenterprises
|Does not apply to citizens|
Company / Companies
Social partners' role in designing the measure and form of involvement:
|Trade unions||Employers' organisations|
|Form||Not applicable||Not applicable|
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 into the management of policy measures.
Eurofound (2020), COVID III state guarantee programme for self-employed and companies up to 500 employees, case CZ-2020-21/894 (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.