We have already informed you about the discussed legislative proposals regarding postponement of repayment of loans, lease of business premises, judicial package, and others. These legislative proposals have been discussed at the current Senate meeting since yesterday. Let us hereby summarize the content of these legislative proposals together with the results of the Senate´s decisions.

The postponement of repayment of loans can be used for loans contracted and drawn before 26th March 2020 and loans contracted before 26th March 2020, which are secured by real estate or by a right in rem, loans granted by a building society or loans granted for the purpose of construction of real estate, transformation of a construction and other purposes stipulated by this law. The period of payment may be postponed by the length of the period of protection, which lasts from the first day of the calendar month following the day on which the lender receives the debtor´s notification of his intention to use the period of protection until 31st July 2020 (if the debtor decides to use the shortened protection period) or until 31st October 2020. It will be possible to send the notification of use of the postponement of payment by means of remote communication and the postponement of payment is free of charge. Please note, that during the period of protection, the interest on the loan principal keeps accruing. This act was already signed today by the president of the Czech Republic. We will inform you about its coming into effect.

Today, the Senate also discussed the bill on the lease of business premises, which prevents landlords from unilaterally terminating the lease during the period of protection only on the grounds of the lessee´s delay with the payment of the rent if this delay occurred in the applicable period (i.e. from 12th March 2020 to 30th June 2020), and at the same time if this delay occurred due to the measures in connection with preventing the spreading of the coronavirus outbreak. This proposal was returned with amendments to the Chamber of Deputies for reconsideration. These amendments include other possibilities for supporting entrepreneurs, in particular proposals of a state guarantee on rent arrears, completion of the “Twenty-five” support programme and others. We will keep you informed about further developments in the discussion of this draft bill.

Furthermore, today the Senate approved the so-called “judicial package”, which includes in particular:

  • remission of missing of time-limits, which will be assessed on an individual basis and will only be possible for reasons relating to measures against the spread of the coronavirus epidemic, in civil, insolvency, execution, administrative and criminal proceedings, in proceedings before the Constitutional Court and the Ministry of Justice;
  • postponement of the debtor’s obligation to file an insolvency petition for the period of 6 months after the end of the extraordinary measures; creditor insolvency petitions filed before 31st of August 2020 shall not be taken into account;
  • bodies of legal persons will be able to make decisions by distance manners or per rollam, even if the memorandum does not allow it.

Moreover, at today’s meeting of the Government of the Czech Republic, it was approved to increase the nursing allowance from the original 60 % to 80 % of the reduced daily assessment base, RETROSPECTIVELY from 1st April 2020, while the Czech Social Security Administration will pay out the difference additionally. Families, whose children will not be able to go to school from 25st May 2020 due to failure to comply with the regulation of the Ministry of Education, Youth and Sports will also be eligible for the nursing allowance.

In addition, the Government approved the planned loosening of the measures, while with effect from 20th April 2020, crafts with their establishments, farmers’ markets, car marts and car showrooms, outdoor training activities of professional athletes and weddings of up to 10 people will be permitted.

In case of any further questions, please don’t hesitate to contact us at any time.