彼得森经济研究所-欧洲五大经济体的新冠疫情信贷支持计划（英文）-2021.4-103页_1mb

Summary of "21-6 COVID-19 Credit Support Programs in Europe's Five Largest Economies"

Core Content

This paper provides an in-depth analysis of national credit support programs, particularly loan guarantees, implemented by the European Union's five largest economies (France, Germany, Italy, Spain, and the United Kingdom) and the United Kingdom in 2020 as part of their fiscal policy response to the economic impact of the COVID-19 pandemic.

Main Points

• Purpose of Credit Support Programs: These programs were introduced to support private-sector liquidity, especially for small and medium-sized enterprises (SMEs), by providing guarantees for bank loans, promissory notes, and other forms of credit.

• Scope of Analysis: The study focuses on country-specific credit support programs implemented in the context of fiscal policy, excluding ECB actions and certain monetary policy instruments like the Bank of England’s Term Funding Scheme for SMEs (TFSME).

• Announced Envelopes: The total announced credit support envelopes across the five countries were substantial, with loan guarantees forming the bulk of these measures. In all countries, loan guarantees accounted for more than 90% of the total support volumes.

• Implementation and Structure: Public financial institutions (PFIs) were central to the administration of these programs. They acted as intermediaries between the government and businesses, often using state guarantees or counter-guarantees to support their operations.

• State Aid Considerations: The European Union's state aid framework generally prohibits selective support for local businesses, but exceptions were made under Article 107(3)(b) TFEU for programs addressing a "serious disturbance" in the economy caused by the pandemic. A Temporary Framework (TF) was established to facilitate the rapid approval of these programs.

• Program Conditions: The TF outlined specific conditions for loan-guarantee programs, including minimum premiums based on loan duration and recipient type (SMEs vs. large enterprises), maximum coverage (up to 90%), maximum program duration (up to six years), and limits on loan amounts based on wage bills or turnover.

• Usage Trends: Despite the large announced envelopes, actual usage was less than the total amounts, with most guaranteed loans expected to be repaid. The usage leveled off in the second half of 2020 across all countries.

• Public Financial Institutions (PFIs): PFIs played a key role in administering the credit support programs. For example, in Germany, KfW and the Economic Stabilization Fund (WSF) were central to the implementation, while in France, Bpifrance, and in Spain, ICO were key actors.

Key Information

Table 1: Main Credit Support Programs

• Loan and other non-trade credit guarantees: 14 programs, 92% of the total.
• Trade credit guarantees: 3 programs, 2% of the total.
• Debt security purchases: 2 programs, 5% of the total.
• Funding of loans: 1 program, not included in the percentage.
• Subordinated loans: 1 program, 1% of the total.
• Wholesale refinancing of loan portfolio: 1 program, 0% of the total.
• Total: 22 programs, 100% of the total.

Table 2: Largest Loan Guarantee Programs

• France: Bpifrance, 307 € billion.
• Germany: WSF (400 € billion), KfW (150 € billion).
• Italy: Central Guarantee Fund for SMEs (250 € billion), SACE (100 € billion).
• Spain: ICO, 179 € billion.
• UK: British Business Bank, 92 € billion.

Table 3: Public Financial Institutions and Their Characteristics

• France: Bpifrance, owned by Caisse des dépôts et consignations (CDC) and the French state.
• Germany: KfW, 80% owned by the federal government, 20% by states. WSF is fully state-owned.
• Italy: Central Guarantee Fund for SMEs (managed by Mediocreito Centrale), SACE (owned by CDP).
• Spain: ICO, fully owned by the Spanish government.
• UK: BBB, fully owned by the UK government.

Key Conditions Under the TF

• Minimum Premiums: Vary by recipient type and loan duration.
• Maximum Coverage: Up to 90%.
• Maximum Duration: Up to six years.
• Loan Amount Limits: Based on wage bills, turnover, or liquidity needs.
• Eligibility: Excludes businesses already in difficulty as of 31 December 2019.

Conclusion

The paper highlights how European governments used loan guarantees and other credit support mechanisms to mitigate the economic fallout of the pandemic. It emphasizes the role of PFIs in implementing these programs, the importance of the EU’s Temporary Framework in facilitating their rapid deployment, and the differences in program design and usage across the five countries. The study also notes that while the announced support was significant, actual usage was more moderate, and the programs were largely structured to ensure repayment and minimize public financial risk.