Loan guarantees and other national credit-support programmes in the wake of COVID-19
Last update: 25 November 2020
Credit-support measures, such as loan guarantees, have been one of the main instruments with which European countries have acted to mitigate the liquidity shock facing businesses during COVID-19 lock downs. Support measures make a complex picture since they are typically provided through a number of different national programmes in each country, and in some countries are managed on a highly decentralised basis.
This dataset and accompanying figures provide an overview of the main programmes in France, Germany, Italy, Spain and the United Kingdom, and of their take-up. Please find a note on methodology below.
Data Policy: This page provides a number of Bruegel datasets for public use. Users can freely use our data in its unchanged form or after any transformation for any purpose and can freely distribute it, provided that proper attribution is made to the source, but not in any way that suggests that Bruegel endorses the user or their use of the data.
DOWNLOAD DATA updated on 25/11/2020
Figure 1: Government-backed credit support to businesses, € billions
Figure 2: Government-backed credit support to businesses as percent of 2019 GDP
Note on methodology
This dataset and accompanying figures provide information on the evolution of government-backed credit support under the various programmes in the different countries.
Credit support is mostly in the form of loan guarantees, except in the United Kingdom, where the corporate debt purchase programme amounts to a quarter of all credit support offered to businesses. In Spain, guarantee programmes cover both bank loans and promissory notes, though the latter is relatively small. Specifically, the Spanish guarantee programme on promissory notes has an allocated envelope of €4 billion. For simplicity, the smaller €0.5billion counter-guarantee programme (provided to mutual guarantee societies by the Compañía Española de Reafianzamiento S.A., or CERSA) is not discussed here.
For credit-guarantee programmes, the dataset reports the full nominal amount of the credit covered by the public guarantee, ie 100% of the credit (eg loan) amount even if the guarantee covers, say, only 70% of it.
The numbers presented in the dataset exceed the amounts of guaranteed loans actually paid out, because businesses may obtain a bank’s commitment for a guaranteed loan but then opt to not use it.
Table 1 lists all the programmes included in this dataset.
Table 1: Government-backed credit support programmes to businesses included in the dataset