[ad_1]
A large part of the so-called crown loans have not yet been used. That’s what banks say at SRF’s request.
At the end of March there was an avalanche: numerous clients of SMEs, from small and medium-sized companies, applied for loans guaranteed by the federal government from their internal banks for fear of the effects of the crown crisis.
For example, UBS, the largest Swiss bank, has received more than 23,000 requests. More than 7,000 at Zürcher Kantonalbank (ZKB). Around 120,000 Covid loans were granted across Switzerland.
Request made, but no money was withdrawn
Now it turns out: only one in five SMEs has taken out these loans in the last six weeks. At SRF’s request, UBS speaks of an “overwhelming majority” who applied for the loans but did not touch them. At ZKB, the largest cantonal bank, 80 percent of companies have yet to touch loans, even though the money is in their accounts.
Other banks have also confirmed that the companies have secured funds but have not yet used them. And new requests only come drop by drop. “This is good news,” says Werner Scherrer of the Zurich SME and Trade Association. Because it shows that SMEs have accumulated their own resources, from which they can now take advantage.
No debt is needed in stock
The Swiss Trade Association (SGV) also sees this as confirmation that SMEs are careful to borrow. Because debt that is not absolutely necessary would be expensive: secured loans are subject to conditions. For example, dividends cannot be paid after subscription. Additionally, loans must be repaid within five to seven years.
So was all the action just hysteria and unnecessary? No, experts say. Because no one could estimate how the crisis would unfold almost two months ago. It is also unclear whether there will be a second wave of contagion leading to a shutdown again.
The companies have applied for the loans as a business precaution. The great benefit of loans is, therefore, their symbolic effect. The knowledge of this non-bureaucratic financial aid has given companies security.
Rendez-vous & Info3 May 14, 2020, 12 p.m. and 12:30 p.m.
[ad_2]