ABN AMRO extends support measures for businesses affected by coronavirus
March 27 2020 - 2:00AM
ABN AMRO extends support measures for businesses affected by
coronavirus
ABN AMRO extends support measures for businesses
affected by coronavirus
Last week ABN AMRO announced that, for Commercial Banking
clients with a credit facility of up to 2.5 million euros, payment
of principal and interest will be deferred for six months. Today
ABN AMRO is extending this measure to Commercial Banking clients
with a credit facility with a principal and/or a limit of up to 50
million euros. Principal and interest payments will not be
collected from these clients from April through September. They
will be allowed to make these payments at a later date. Any client
that does not need to defer payment is required to inform the bank
by 31 March 2020 at the latest. Payment will not be deferred for
these clients.
Breathing spaceDaphne de Kluis, CEO of
Commercial Banking: “The deferral measure gives clients more scope
in their liquidity position. And by automatically implementing it,
we can make these arrangements quickly for a large group of
businesses. We saw last week that this works well and gives clients
peace of mind. We have therefore decided to raise the limit to 50
million euros. This will give larger Commercial Banking clients
breathing space too.”
Large government support packageABN AMRO’s
measures are in addition to a large package of measures offered by
the Dutch government. Businesses can apply for additional
government-guaranteed loans from their banks, including under the
SME credit guarantee scheme. Other parts of the government support
package also offer businesses extra liquidity.
Many questionsMany businesses are eager to make
use of support and deferral measures, and many have questions or
are applying for a loan under the SME credit guarantee scheme. As a
result, they may have to wait. Priority will be given to clients
who are being immediately affected and/or hit hard
financially.
No impact? Inform the bankDeferral of interest
and principal payments is explicitly intended for businesses that
need support due to the impact of coronavirus. Deferral of payment
will be implemented automatically for Commercial Banking clients
with a credit facility with a principal and/or limit of up to 50
million euros. ABN AMRO is doing this to offer fast support to a
large group of businesses. Clients in this category who do not need
this support are required to inform the bank of this by 31 March
2020 at the latest. If they do not do so, payment will be
automatically deferred. Details of the measure for credit
facilities of up to 2.5 million euros are available on our website;
this measure will now also apply to Commercial Banking clients with
a credit facility with a principal and/or limit of up to 50 million
euros. The website also describes the scope of the measure, and how
and when payment must be made at a later date. Businesses that do
not need support can inform the bank of this on our website.
Commercial Banking clientsCommercial Banking
clients are companies with annual turnover of up to 250 million
euros. From today, the deferral measure will apply to all
Commercial Banking clients with a credit facility with a principal
and/or limit of up to 50 million euros, with the exception of a
number of specific types of financing, such as commercial finance,
leveraged finance for professional investors, club deals and
syndicated loans with several financers, and financing for
commercial real estate in excess of 2.5 million euros. However,
real estate clients with a credit facility of between 2.5 million
euros and 50 million euros that lease property to hard-hit sectors
are eligible for deferral. Loans managed by the Recovery team of
the Financial Restructuring & Recovery department are not in
scope. This also applies to loans linked to interest rate
derivatives. Clients with interest rate derivatives can contact the
bank to discuss their options.
Above 50 million eurosWhere possible customised
arrangements will be offered to Commercial Banking clients with a
credit facility in excess of 50 million euros. This is also the
case for large corporate clients served by Corporate &
Institutional Banking (annual turnover in excess of 250 million
euros).
Commercial Banking’s total loan portfolio was 42.6 billion euros
at year-end 2019. Around 40% of this loan volume concerns clients
in scope of the new measure. The impact of the coronavirus on the
economy, on our clients and on the quality of our loan portfolio is
currently uncertain.
Investor Relations Dies Donker
+31(0)20-6282282
investorrelations@nl.abnamro.com
Press Relations Ariën Bikker+31
(0)20-6288900pressrelations@nl.abnamro.com
This press release is published by ABN AMRO Bank N.V. and
contains inside information within the meaning of article 7 (1) to
(4) of Regulation (EU) No 596/2014 (Market Abuse
Regulation).
- 20200327 ABN AMRO extends support measures for businesses
affected by coronavirus
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