Moratorium on loans
On 20 March 2020 Slovenia’s legislature adopted the Intervention Measure Act on Deferred Payments of Borrowers'’ Obligations (Zakon o interventnem ukrepu odloga plačila kreditojemalcev, ZIUOPOK) which enables a moratorium on loan payments (odlog) for a period of 12 months, though banks and borrowers remain free to agree more favorable loan conditions. This measure is not limited to certain industries or types of businesses, but it is limited only to payments which were not due before 12 March 2020 when the epidemic was declared in Slovenia. The request for a moratorium needs to be filed with a bank within six (6) months of Slovenia cancelling the epidemic status at the latest. Lenders affected are banks and savings institutions with their registered seat in Slovenia and banks from other member states with a branch office in Slovenia. The supervisory authority identified in the ZIUOPOK is the Bank of Slovenia.
Moratorium on loans applies to the loans granted by the Slovene Enterprise Fund, Eco Fund – Slovenian Environmental Public Fund (Eko sklad – Slovenski okoljski javni sklad) and other public funds established by Republic of Slovenia pursuant to the Act on Intervention Measures to Mitigate the Effects of the COVID-19 Infectious Disease Epidemic on Citizens and the Economy (Zakon o interventnih ukrepih za zajezitev epidemije COVID-19 in omilitev njenih posledic za državljane in gospodarstvo) as well. Here, however, rules are slightly different (e.g. a moratorium of up to 12 months applies to all payment obligations under a loan agreement).
Measures by SID Bank
SID Bank (the Slovenian development and export bank) has amended and supplemented its existing financial instruments in order to help companies solve liquidity problems, including liquidity in the supply of services and products, problems with reduced demand, shortfall of production, problems in the supply chain and investment problems.
In addition, SID Bank has prepared:
- short-term liquidity loans for SMEs and large companies
- loans for working capital for the self-employed, SMEs, large companies and cooperatives involved in the tourism and restaurant sectors
- financing of the purchase of protective equipment, material and services for the purpose of managing the COVID-19 epidemic by health centres and providing guarantees for delivery of protective material and healthcare equipment
- indirect financing via banks and saving institutions to all companies and the self-employed
- loan insurance for advance payment for delivery of respirators, masks and other protective equipment
- amended insurance for loans in relation to export (among other insuring service and payment guarantees), and
- indirect financing via banks and saving institutions to all companies and the self-employed.
Measures by Slovene Enterprise Fund
The Slovene Enterprise Fund (Slovenski podjetniški sklad) has prepared a guarantee scheme for loans for working capital purposes granted by banks to micro- and small-sized companies up to EUR 100,000 and to medium-sized companies up to EUR 200,000 with subsidised interest rate.
The Slovene Enterprise Fund is further preparing a new measure in the form of a liquidity loan totalling EUR 25 million that will be available to micro-sized companies, SMEs and cooperatives.