NEWS - COVID RECOVERY MEASURE

ČMZRB will help travel agencies to obtain compulsory insurance

The Ministry of Industry and Trade and the Czech-Moravian Guarantee and Development Bank (ČMZRB) launched the call in the COVID TRAVEL GUARANTEE program, which was created in the cooperation with the Ministry of Regional Development. This new program aims to mitigate the negative effects of the pandemics on tourism and travel services. The support is provided in the form of bank guarantees issued by the ČMZRB, which can be used by travel agencies to obtain compulsory insolvency protection insurance and to cover their mandatory co-participation on this insurance, while saving own resources for developing their business in the post-covid era.

The new program is designed particularly for small and medium sized travel agencies, which were hardly hit by the COVID travel restrictions and which suffered a significant decrease in sales. Thus, it makes them difficult to meet their obligations, including the legal obligation to have insurance against bankruptcy. ČMZRB will issue guarantees for one calendar year and the guarantee will cover up to 75% of the travel agencies´ co-participation on the compulsory insurance. However, the guarantee is limited both in relative and absolute terms: it can cover 30% of the insurance indemnity limit and CZK 4 million (EUR 152.000) at maximum.

The programme was discussed with the Association of Czech Travel Agencies, the Czech Tourism Union as well as the Czech Insurance Association. The program´s budget is CZK 300m and we expect that more than 90% of travel agencies operating on the Czech market will be eligible for support from the program.

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