2023-04-20 18:10:37
Covid credits in Switzerland
“These loans were meant to help us, not sink us!”
The rise in interest rates for Covid loans is making some SMEs more precarious. The Swiss Business Federation (FSE) has launched a petition to maintain the rate at 0%.
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The Federal Council (FC) has decided to raise the interest rates for Covid loans as of March 31. A situation that makes the survival of very small businesses (VSEs) and SMEs that had used these loans even more difficult, at the rate of 0%. While loans amounting to up to 500,000 francs are now subject to a rate of 1.5%, those over half a million are subject to a rate of 2%. The FSE judges this decision unsustainable and has launched a petition asking the Federal Council to keep loan interest at 0% for at least one more year. At present, it has collected over 400 signatures.
“If the rate could stay at 0% for another year or two, of course that would allow us to organize ourselves,” says Gwendoline Raval, florist in Eysins (VD). The one which started its activity in 2019, eight months before the start of the Covid crisis, had taken out a loan of 15,000 francs to keep its head above water and in particular to ensure the payment of its rent.
“The news of the rate change and the immediacy of its entry into force went badly. For my part, business is going quite well for the moment, but the situation is difficult and I can imagine that it is really problematic for other SMEs. Of course we knew that the rate was likely to change, but we didn’t expect it to happen so quickly. These loans were supposed to help us, not sink us!”, continues the one who, like many other borrowers, would welcome a backpedal from the CF.
Like many other restaurateurs, Ines Haymoz had used a 0% Covid credit. “I had borrowed 35,000.- to be able to normally pay the salaries of my employees”, explains the boss of the “Soleil Blanc” in Fribourg. “After what we endured during the Covid, and while we are suffering the brunt of a price increase, the Federal Council’s announcement was the icing on the cake! It caused an outcry, especially since at the same time, the Confederation was saving Credit Suisse with billions! ”, protests an Ines Haymoz who has already taken steps with her bank to repay the balance of her credit ( approximately 11,000.-), again this month. Because his personal situation allows it and because there is no question of paying interest.
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