"Financial bazooka “to help families and firms cope with the impact of the COVID-19 crisis

Families that experience financial difficulties as a result of the COVID-19 crisis will be able to defer repayments on their mortgages until September. Companies that were financially sound prior to the introduction of measures designed to curb the spread of the novel coronavirus too will be able to defer repayments. A 50,000 million euro financial buffer is being set aside to be used if they are unable to make repayments due to the crisis. The measures were announced by the Federal Finance Minister Alexander De Croo (Flemish liberal), the National Bank of Belgium and the banking and financial services federation Febelfin. 

The Governor of the National Bank Pierre Wunsch called the measures a “financial bazooka”. Meanwhile, The Finance Minister announced a raft of measures designed to soften the economic blow from the COVID-19 crisis.

The Governor of the National Bank Pierre Wunsch called the measures a “financial bazooka”. Meanwhile, The Finance Minister announced a raft of measures designed to soften the economic blow from the COVID-19 crisis.

Families, companies and self-employed people will be able to defer repayments on their mortgage or business loan if they run into difficulties resulting from the corona crisis.

"Those that have loans with banks will be able to ask their bank to not make any repayments between now and 30 September”, Mr De Croo said.

This includes self-employed people and companies that were “viable” before the onset of the crisis.

Families too can defer “Families that can show that they have been impacted by the corona crisis, for example by being laid off, can ask their bank not to have to make any mortgage repayments between now and 30 September”. 

“Guarantee arrangement"

In addition to this the authorities have joined forces with the financial services industry in setting up a “guarantee arrangement” covering up to 50,000 million euro in losses that may be incurred if future loans cannot be repaid.

All new loans granted to companies and the self-employed (with a maximum duration of 12 months) will be covered by the “guarantee arrangement”.The measures come on top of previous measures taken by the federal and regional authorities to help see business through the current crisis.