The Ministry of the Economy announced on Wednesday the extension until the end of 2023 of an agreement allowing the companies most in difficulty to spread out the repayment of State-guaranteed loans (PGE) taken out during the health crisis.
The economic context for 2023, marked by the consequences of the energy crisis, is likely to cause cash flow difficulties for certain companies, the minister commented in a press release.
By renewing this market agreement for the year 2023, all the players involved undertake to support companies in actual difficulty with reimbursement in order to find an appropriate solution to their situation, he added.
This agreement, concluded between the Minister of the Economy, the Banque de France, the French Banking Federation and the Institut d’mission d’Outre-Mer, renews an agreement of January 2022.
The latter established a simplified procedure for VSEs and SMEs having taken out a loan of less than 50,000 euros, to allow them to spread out the repayment of the PGE beyond the six-year period initially provided for, with maintenance of the State guarantee.
Between March 2020 and June 2022, nearly 700,000 PGEs were granted by the banks for a total amount exceeding 143 billion euros. These loans have enabled many companies to hold out during the pandemic and to replenish their cash flow on advantageous terms, their interest rate not exceeding 2.5%, including the state guarantee.
According to the Minister of the Economy, the vast majority of companies have faced the repayment of their PGE without difficulty in 2022: more than 30 billion in credits have been repaid out of the 106 billion euros granted to VSEs/SMEs since 2020 .
In 2022, some 260 companies were able to spread the PGE over two to four additional years compared to the initial schedule, with maintenance of the state guarantee.
Companies whose PGE amounts to more than 50,000 euros have the possibility of seizing the departmental crisis resolution council, whose role is to support the company and offer it the most suitable solution, referring it if necessary to the credit mediation.