ECONOMY

‘Gefyra 2’ to have criteria established

gefyra-2-to-have-criteria-established

The criteria for the state subsidy program for business loans taken out by companies battered by the pandemic will be discussed in conference calls the Finance Ministry will have with European Union officials next week.

The so-called “Gefyra 2” program is aimed at subsidizing the tranches of corporate loans in the same way the Gefyra (Bridge) program subsidized the mortgage tranches of vulnerable borrowers.

Talks will also focus on the bankruptcy code and the work the Finance Ministry has done for its timely activation, following the extension granted to the streamlining process and out-of-court settlements.

A key aspect of the new bankruptcy legislation will be the state entity to sell and lease back properties, as it will acquire the houses that are the borrowers’ main residence and then they will pay rent to continue to live in them.

The ministry is expected to proclaim a tender in March to select the private funds that will invest in the creation of that entity, as well as undertake its management. The guaranteed revenues from the rental payments will likely attract many suitors.