Insights on institutional solutions to finance companies

In an article published by De Standaard, head of Deloitte Legal's Banking & Finance team Werner Van Lembergen gave his insights regarding the mobilisation of capital to help companies avoid bankruptcy because of the COVID-19 outbreak.

The Economic Risk Management Group (EMRG) Task Force initiated a ​​mobilisation of institutional capital to protect healthy companies from falling into bankruptcy because of the outbreak. The plan, which will complement the Federal Government's EUR 50 billion 'bazooka', involves the Federal Participation and Investment Company (FPIM) and the Flemish Government holding (Participatiemaatschappij Vlaanderen (PMV)).  While the EUR 50 billion package is limited to 12 month credits, this institutional capital is available in longer term (subordinated) loans, to allow companies more recovery time. 

With insurers also involved, Werner highlights that: 'In the Netherlands, insurers such as NN and Aegon already provide loans to companies. There are various options for involving the private sector in Belgium, not only for corporate financing but also for social housing'.

Read the article published by De Standaard (subscription required)