PGE: repayments can be extended to 10 years

The companies having borrowed less than 50,000 euros, and which shows difficulties in repaying one ready Guaranteed by the State (PGE), can pay their payments up to 10 years, but also report the first deadline at six months, explained the Minister of Economy Bruno Le Maire. “We have signed an agreement this morning that will allow recourse to the mediation of the credit to repay the loans guaranteed by the State of small businesses that can prove the difficulties of repayment of particularly important”, the Minister indicated in the issue of a meeting meeting notably the governor of the Banque of France François Villeroy de Galhau and the President of the French Banking Federation (FBF) Nicolas Théry.

The agreement, a “supplementary tool for accompanying people in the event of a crisis”, allows them to respond to the “investigation” of the TPE-PME at the end of the deadline for reimbursement of their PGE, contracted to make in the aftermath of Covid’s crisis, he added. Also present at the meeting, Gérard Pfauwadel, the national adviser on the crisis, stated that the objective was “to ensure that no company is left alone in the face of its difficulties”.

According to Bruno Le Maire, a small number of companies are concerned: less than 25,000, with a default rate of 3.8%. For companies with a lower loan of 50,000 euros, they will have the possibility to request a refund of the payment from the time of 6 years currently preview, up to 10 years, “in a free manner and in a confidential manner”, explained Bruno Le Maire. It may also be considered to defer the first payment of the spring term at the end of the year. For companies with a PGE of more than 50,000 euros, they will have the opportunity to seize the departmental emergency exit council, whose role will be to support the company and to offer the most suitable solution, the recipient “si besoin” towards the mediation of the credit.

Some 697,000 companies have contracted a PGE since March 2020, for a total encouragement of 143 billion euros. In total, 88% of the beneficiaries were companies with less than 8 employees. “The vast majority of companies, including SMEs and TPEs, would be in a position to reimburse the PGE normally, in time and in time,” said François Villeroy de Galhau. On January 5, the FBF indicated that 16% of companies having contracted a PGE had already been reimbursed in full. The president of the Union of Neighborhood Businesses (U2P) Dominique Métayer saluted in a statement “an appreciable oxygen buffet”, even if the device “does not result in all the difficulties of business”.