The Belgian State guarantee regime: can guaranteed loans bridge the Covid-19 financing gap?
To that effect, the Belgian government has put in place a mechanism whereby qualifying short-term credits granted by credit institutions to viable non-financial companies will benefit from a State guarantee. This should encourage credit institutions to continue their lending into the Belgian economy so as to preserve economic activity.
In this alert, we answer the most prevalent questions asked by companies and lenders. This will help in the assessment of whether a company can benefit from a guaranteed credit and how to incorporate this into its credit documentation.