Preliminary remarks

  • The State guarantee will cover losses incurred by banks that cannot be recovered from borrowers, third parties or in any other way.
  • The Minister of Finance will set out the procedure that is to be used by the Eligible Lenders to activate the Guarantee. The Royal Decree retroactively applies as from 1 April 2020. Deadline for the Eligible Lenders to submit a request is 31 March 2023.

Eligible Lenders cannot call upon the guarantee in case they do not comply with another federal support measure, namely the payment deferral granted to non-financial undertakings.