The Corona crisis is having a devastating impact on economies and the finances of businesses and countries worldwide. Switzerland is also affected by the economic consequences and, like other European countries, is fighting the effects of a recession as a result of the pandemic. The Swiss government has now responded by adopting a package of measures that offers financial support to businesses and the self-employed.
An important part of the rescue package is the 20 billion francs in loans that the federal government is making available to companies and self-employed people facing acute financial problems. With this step, the federal government wants to secure the liquidity of companies and self-employed persons in Switzerland and thus protect them from possible bankruptcy. The loan can be applied for either directly through a bank or through trustees and agents and is designed to help businesses cover their fixed costs and remain solvent.
Lending is secured by the federal government by means of a guarantee, which is intended to support banks and other lenders in granting loans to companies and self-employed persons. The term of the loan is usually a maximum of five years, with the first repayment not required until the second year. The amount of the loan is based on the needs of the companies and should be adjusted on an individual basis. This move by the federal government will help support the Swiss economy in times of crisis and ensure social cohesion and economic stability.
The economic impact of the coronavirus in Switzerland
The Corona crisis not only has health implications, but also economic consequences for Switzerland. Many companies are being forced to scale back or shut down operations altogether. This results in massive financial losses and job losses.
In order to counteract this development, the Swiss government is making available loans amounting to 20 billion Swiss francs. These are intended to benefit small and medium-sized companies in particular, which are especially affected by the crisis.
- However, the impact of the crisis does not only affect domestic demand. Exports are also suffering from the restrictions in many countries.
- However, there are also industries that are benefiting from the crisis, such as the pharmaceutical industry, which is currently stepping up research into a vaccine.
It remains to be seen how the situation will develop in the coming weeks and months. What is certain, however, is that the Corona crisis has had a massive impact on the economy in Switzerland and will continue to do so in the future.
How the federal government is supporting companies during the Corona crisis?
The effects of the Corona crisis have hit many companies hard. The Confederation has responded by providing loans totaling 20 billion Swiss francs to help affected companies during the crisis.
But how does the granting of these loans work? The federal government is relying on close cooperation with the banks in this regard. The loans are to be disbursed through existing financial institutions to make the process as efficient and fast as possible.
The target group for these loans are companies directly affected by the Corona crisis. These include companies that have suffered losses due to cancellations of major events and businesses whose supply chains have been disrupted. Even those businesses that had to close their doors during the Corona crisis can apply for a loan.
- What are the requirements for applying for a loan?
- Companies have to prove that they have financial problems due to the Corona crisis.
- The loans must be used to secure jobs or invest in the business.
- No dividend payments may be made to shareholders or bonuses paid to employees.
- The loans have a term of six years.
It remains to be seen how the economy will develop in the coming months. Until then, companies that have experienced financial hardship due to the Corona crisis can count on federal assistance.