As of March 25, businesses affected by the Covid-19 crisis can apply for the state-owned development finance institution ALTUM new support instruments, approved by the government – guarantees for bank loan holidays and current asset loans.
Both support instruments have been developed in collaboration with the Ministry of Economics and approved by the European Commission. The guarantees for bank loan holidays will enable banks to postpone principal loan payments for up to two years, and the current asset loans will be granted on favorable terms to businesses whose operations have been substantially reduced.
ALTUM Management Board Chairman Reinis Bērziņš:
“We, ALTUM, together with the government and banks are ready to provide swift assistance to businesses to help them cope with the difficulties caused by the negative impact of Covid-19. The combined positive effect of the new financial instruments on the economy will exceed EUR 900 million. Thinking about clients’ conveniences and adapting to the new circumstances, we have set up a call center to remotely provide consultations about the two new ALTUM support programs for the Covid-19-affected businesses. Meanwhile, all other support instruments provided by ALTUM are also available to entrepreneurs, including financing to startups, financing to SMEs of various caliber, loans for buying agricultural land, services of the Land Fund and others.”
The EUR 50 million* guarantee scheme for bank loan holidays will allow banks to restructure more than EUR 700 million worth of loans. Meanwhile, the current asset program will allow to provide EUR 200 million in loans to businesses who in the current situation experience shortages of working capital necessary for their daily operations.
- The guarantees for bank loan holidays and current asset loans are only meant for businesses affected by the Covid-19 crisis;
- To receive ALTUM support, a company has to be viable in the long term and able to prove that the support will help it survive the crisis and successfully continue business operations;
- Entrepreneurs have to inquire about the guarantees for loan holidays at their banks. Likewise, they have to consult their banks about the current asset loans. If the bank refuses the loan, entrepreneurs have to turn to ALTUM.
More information here.
Information source: ALTUM