Entertainment event support by Ministry of Finance
- Cash subsidy to compensate for direct and indirect costs relating to the cancellation or postponement of larger entertainment events (e.g. concerts, sports, etc.). It is required that the events have been publicly known before the 6th of April 2020.
- Companies acting as suppliers for events are eligible for compensation.
Reduced loan restrictions by Ministry of industry, business and financial affairs
- Since the financial crisis, banks and mortgage institutions have been required to reserve 1 % of its total funds as a buffer against a new financial crisis.
- This restriction now no longer applies, which is expected to improve the financing environment for companies.
Loan guarantees by Ministry of Finance
- The government provides a loan guarantee on 70% of new corporate loans that are issued to cover losses directly relating to COVID-19. The loan amounts up to DKK 1 billion in losses (total in Denmark) intended for all companies that are:
- Small and medium size companies: Operating losses of 50% or more.
- Large companies: Revenue losses of 30 % or more.
- The Danish and Swedish government offers new larger guarantees to SAS, amounts up to DKK2 billion.
Economic stimulus to the people
- The government has paid out 1000 DKK the 1st of October to people on transfer income in order to boost the economy.
- The government has released the three weeks of “frozen” holiday pay by October.
- Extended right to unemployment and sickness benefits of respectively two and three months.
- DKK60 million set aside for improving the qualifications of unemployed.\
- The government will subsidize 25-80% of a company’s fixed costs if the company’s revenue is expected to decline significantly as a result of COVID-19.
- The share of fixed costs that are subsidized depends on the expected revenue decline:
- 80% if revenue decline of 80-100%;
- 60–80% if revenue decline of 60-80%;
- 25% if revenue of 30-60%.
- In addition, companies that have been commanded to shut down will get all of its fixed costs subsidized.
- The cost compensation has been extended until the 31st of January 2021. Maximum compensation in the period per company: DKK60 million. If actual revenue decline turns out to be less, the subsidy should be refunded. The company requirements are:
- A decline in revenue of at least 30% due to COVID-19 during the period for which the company seeks compensation.
- Minimum monthly fixed costs of DKK8000.
- Documentation on the expected revenue decline has to be signed by an auditor. This cost will be partly refunded by the government in case the application is successful.
- Maximum 90% compensation for smaller companies.
Export credit Guarantee
- The government has increased its guarantee with the public export credit agency (“EKF”) to allow for additional loans to Danish companies within exports that are struggling with liquidity due to the impact of the COVID-19.
- Increase in guarantee to 90%, which makes it easier for companies to take a loan, why the government takes on more risk.
Travel guarantee fund Guarantee
- The Danish Travel Guarantee fund (“Rejsegarantifonden”) offers financial support to end customers if a travel agency goes into bankruptcy. The government has increased its guarantee with the fund by DKK1.5 billion.
- In addition, the objective of the fund has been changed to also potentially provide financial support to travel agencies for cancelled travel arrangements.
- The guarantee fund has been extended until the 31st of January 2021.
Public investments by Ministry of Finance
- The Danish municipalities and regions have been encouraged to move forward investments for renovation of buildings, roads, etc. with the removal of an existing cap on these in 2020. Furthermore, the budget for these type of investments has been increased.
- In addition, municipalities have the option to postpone corporate tax due dates. Furthermore, municipalities are allowed to prepay invoices of up to DKK1 million
Public investment fund by Ministry of Finance
- The government has established an investment fund with funds of DKK10 billion for equity investments in larger Danish companies in need.
- The fund should only invest in companies that are otherwise unable to obtain financing due to the corona crisis.
- The investment criteria include:
- Revenue above DKK500 million.
- Key industry from a national perspective.
- Profitable prior to the corona crisis.
- High share of exports.
- Reduced loan restrictions
- Loan guarantees by Ministry of Finance: The government provides a loan guarantee on 70 % of new corporate loans that are issued to cover losses directly relating to COVID-19.
- The government has introduced “match funding” of DKK3.6 billion, which entitles entrepreneurs and venture-companies to capital in order to insure growth and boost the economy.