Between January and October 2020, the Czech-Moravian Guarantee and Development Bank (ČMZRB) provided Czech enterprises with almost 9,700 guarantees and soft loans worth of CZK 47 billion (app. EUR 1.75 billion). Total volume of support is higher than for our record years 2018 and 2019 combined. This upsurge is caused by the coronavirus crisis, which affected many sectors of the Czech economy in March and once again in October. This is also reason why most of the support was realized in the form of working capital, compared to prevailing investment financing in previous years.
More than two thirds of projects gained support from our COVID programs. Concretely, we supported more than 6,200 projects and the total volume of direct loans and guaranteed loans reached CZK 32.6 billion. More than 3,400 of projects with the total volume of more than CZK 14 billion were financed from our standard programs. “To overcome the immediate impacts of the coronavirus crisis, enterprises seek particularly working capital financing. Beside COVID programs, we can offer such financing also from our existing programs such as GUARANTEE 2015-2023, EXPANSION or S-ENTERPRISE,” CEO Jiří Jirásek explains and adds: “Moreover, small and medium-sized enterprises in some sectors benefitted from the crisis or they take the current crisis as an opportunity for long-delayed investments such as acquiring new technologies or renovating their production facilities. Investment needs of these companies can be financed from our existing programs such as EXPANSION or ENERGY SAVINGS.”
ČMZRB together with cooperating commercial banks and leasing companies pumped up to the economy an astonishing sum of CZK 47 billion. The main beneficiary of our support is the segment of small enterprises with less than 50 employees. “Regardless the concrete product, 86% of our support is directed to self-employed persons and small enterprises, 13% to medium-sized enterprises and less than 1% to companies with more than 250 employees,” clarifies Jiří Jirásek.
In geographic terms, most projects are realized in the capital city of Prague (15%), South Moravian region (14%) and Moravian-Silesian region (13%). In sectoral terms, retail and wholesale trade (38%), manufacturing industry (23%), construction industry (12%) and HORECA sector (8%) are dominating.