One golden rule for companies facing or expecting financial difficulties due to the coronavirus crisis: talk to your banker immediately
17 March 2020 - 3 min Reading time
Banks are supporting solid companies with measures
The financial sector and Minister of Finance Alexander De Croo are very aware that the preventive measures taken by the government to contain the spread of the coronavirus are affecting many businesses. In many sectors, business activity has largely or even completely halted.
The decrease or loss of income, while certain financial costs and obligations continue, is already having significant financial consequences for some companies. It is expected that this will be further exacerbated in the coming days and weeks.
Febelfin and Minister of Finance Alexander De Croo are urging companies facing financial difficulties or the risk thereof to quickly engage with their banker. Together, solutions can be sought to weather the storm.
The financial sector continues to support the economy
Today, we are faced with a severe and societal economic shock that is likely to lead to a recession. The financial sector, in collaboration with the government, aims to prevent the Belgian business community from falling into a deep economic crisis.
The sector has engaged in comprehensive discussions with the Minister of Finance and the National Bank of Belgium over the past few days. The sector itself will make every effort to assist companies that can be considered solid before the onset of this crisis through this difficult period. The sector is calling on companies facing problems due to this crisis to contact their banker as soon as possible to seek targeted solutions.
In this way, companies can navigate this difficult period as best as possible until we return to normal economic conditions. Of course, banks will continue to analyze each company individually. Financial situations, specific outlooks, and the needs of companies can vary greatly. Banks believe that through this approach, the vast majority of companies can be helped through this crisis period.
The Minister of Finance and the National Bank of Belgium are working with the financial sector to explore how a guarantee scheme can provide even broader support in the short term."
