Today, one of our team members took part in a video conference with the director of the Czech-Moravian Guarantee and Development Bank (ČMZRB), the topic of which was the forthcoming state aid programme COVID III. Because the conditions of this programme differ significantly from all the other programmes, which have been introduced so far, we would like to briefly present to you its basic parameters.

COVID III was introduced strictly as a guarantee programme for commercial banks, with a guarantee budget up to the amount of CZK 150 billion, which is supposed to motivate the participating banks to provide loans in a total amount of CZK 500 billion. The COVID III programme therefore aims to give an instrument to banks to provide loans to clients, who wouldn’t otherwise be able to obtain a commercial loan, by means of increase in security. Nevertheless, the return on the provided loans must be ensured.

The support will be provided in the form of guarantees for commercial loans, that is, not for individual loans, but on a one-time basis for the entire portfolio of such loans of a particular commercial bank. The decision to provide the loan, including its inclusion into the portfolio guaranteed by ČMZRB, will be entirely within the discretion of the particular commercial bank. Due to this, the loan applicants will not be required to file an application for the state guarantee on their own, as it was the case in previous programmes.

Into the loan portfolio secured by ČMZRB of a particular commercial bank, all loans provided until December 31, 2020 can be included, while the guarantee scheme will run until June 30, 2024.

As under previous schemes, loans under COVID III will be provided as operating loans, not as e.g. investment loans.

In case of any further questions, do not hesitate to contact us.