Government-guaranteed loans have to be repaid and that is anything but easy – insolentiae
“Government-guaranteed loans: ‘I don’t know if I can pay’, the hour of reckoning has come,” Voix du Nord’s AFP tells us.
First, some numbers to identify the extent of the problem.
According to the Banque de France, of the nearly 700,000 companies that could have a PGE totaling more than 148 billion, it could be significantly larger.
“How do I pay back a PGE equal to 15% of my sales when I’m still making 20% less sales than before the crisis?” It is not possible. Patrick Bellity, Foundry Manager at Sifa Technologies, summarizes the dilemma he currently faces.
At Bercy, everyone seems happy, as according to the ministry “with a few exceptions, companies have started reimbursement as planned”!
But we’d do well not to be too quick in proclaiming victory to our mamamouchis in the economy, because my pinky tells me it’s going to be a lot more complicated than that.
Companies will try to repay the first installments and they will generally manage, even if it involves juggling, but within 3 months for the weakest, it will no longer work.
“In the hospitality industry, where many companies have taken out PGEs, one in four companies claimed at the end of June that they were unable to meet their refunds as inflation dampened consumer spending.“.
As for credit brokerage, if you use this service, friendly as it is, it puts you in a credit case, it closes more doors for you than it can open for you.
As a result, companies are not interested in resorting to this mechanism, it is better for them to apply to the Commercial Court for a recovery plan, since this allows debts, especially those of the State, to be frozen and to apply for a recovery plan. fuse.
We should logically see a very strong increase in backup plans from October or November 2022, which will allow to “freeze” the EMPs.
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Source AFP about La Voix du Nord here