Dutch gov't needs to keep Covid support for businesses going: Banks
Businesses are still taking out loans and applying for payment pauses from banks to get through the coronavirus pandemic. And the banks expect it will be a time yet before all affected companies regain their turnover. "Continuing the government support package is therefore essential," Chris Buijink of the Dutch association of banks NVM said in a statement.
Since the start of the crisis, about 52 thousand companies received loans from Dutch banks, totaling in around 44.3 billion euros. In March alone, banks issued loans to some 3 thousand companies. Since the start of the crisis, 181 thousand entrepreneurs were given payment breaks, totaling in 47.4 billion euros, including 129 thousand entrepreneurs last month.
Sectors like hospitality and catering, retail trade, and events may need until 2022 to recover from the past year and current the lockdown. And the banks can't help everyone.
"Banks can only grant credit or deferment of repayment to companies that are fundamentally healthy and are considered capable of recovering after the crisis," Buijink pointed out, saying that many companies can't get help from banks. "Financing non-viable businesses would be detrimental to banks' ability to help healthier businesses to invest themselves out of the crisis."