1. Spending Measures (Budget Allocations)
- No specific budget allocations have been announced in the Netherlands.
- The European Commission has set up a Corona Response Investment Initiative, which directs € 37 billion towards healthcare systems, SMEs, labour markets and other vulnerable parts of Member State economies.
2. Tax Measures (Deferral of Payroll Tax Obligations, Extensions of Tax Filing Deadlines)
- Temporary Tax Deferral: businesses that encounter negative consequences due to COVID will, upon request, automatically be granted a deferral for payment of taxes for three months. An extension is possible if proof of difficulties is provided.
- Lowering of interest on tax debts: interest on all tax debts is temporarily lowered from 4% (for most taxes) to 0.01%.
3. Subsidies to Preserve Jobs, Employee Benefits, Food Assistance
- Temporary Emergency Measure Bridge to Employment: employers that have a revenue decrease of at least 20% can ask for salary compensation for employees up to a maximum of 90% of the salary of the employees (percentage depends on revenue decrease) for a period of up to three months. Employers have to commit in advance not to fire employees for economical reasons during the bridging period.
- Temporary Bridge Provision Independent Entrepreneurs: income support for independent contractors up to social minimum for a maximum period of three months and possibility to request a loan of up to € 10,517.
- Compensation Entrepreneurs Affected Sectors: payment of a one-time lump sum compensation of € 4,000 for entrepreneurs affected by COVID. It is required that the business is located outside of the residence of the entrepreneur.
- Normal employee benefits and food assistance remains in place.
4. Public Loan Guarantees and Expansion of Loans to Businesses
- Expansion of Guarantee for Business Financing: Under this Guarantee loans of larger businesses are guaranteed for 50% by the Government. The budget for the guarantee is increased from € 400 million to € 1.5 billion and the maximum guarantee per loan is increased from € 50 million to € 150 million.
- Expansion Surety SME-Loan Regulation: Expansion of Surety SME Loan Regulation. Government acts as surety for 90% of the credit sum under qualifying part of a loan (max. 75% (was 50%) of total loan) with a personal surety by lender of max. 10% (was 25%). Possible for businesses that have existed for at least three years with max. 250 employees, annual revenue of max. € 50 million or total balance sheet of max. € 43 million and for a loan of up to € 1.5 million that has a maximum duration of two years.
5. Student Loan Relief
6. Insolvency Law Relief
- In 2019, a bill was submitted to parliament seeking to introduce the possibility of a (cram down) restructuring plan outside formal bankruptcy proceedings. The bill is a cross-over of the US Chapter 11 and the UK Scheme of Arrangement with the option of both public and confidential proceedings. Following COVID the legislator has expedited the legislative process and the aim is now for the bill to adopted and to enter into force by 1 July 2020.
1. Reduction of Interest Rates
2. Expansion of Central Bank’s Holdings of Government Bonds
- See under 6.
3. Other Measures to Support Flow of Credit
- All major banks in the Netherlands have announced that businesses with a loan of up to € 50 million get a deferral of six months for payments on the loan and any interest that is due.
- The European Investment Bank will make up to € 40 billion available for funding of businesses in the European Union.
4. Suspension of Foreclosures/Evictions
- Social Housing Associations have temporarily suspended evictions.
- All major banks have temporarily suspended foreclosing on homes.
5. Reductions/Suspensions of Mortgage Payments
- All major banks have provided homeowners with the option to defer payment on their mortgage for a period of up to three months.
6. Asset Purchases (Liquidity Facilities, Purchase of Private and Public Sector Securities, Acquiring Equity of Larger Affected Companies)
- The European Central Bank will buy up to € 120 billion in commercial bonds in the Eurozone until the end of the year.
- The European Central Bank will buy up to € 750 billion in commercial and treasury bonds in the Eurozone under the Pandemic Emergency Purchase Program.
7. Exchange Rate Adjustments
1. Social Distancing
- People are advised to stay at home as much as possible and to host as little company as possible (max. of 3 people at a time)
- When going outside people have to keep 1,5 meters distance to other people
- If a person has symptoms of COVID he or she and all people living in the same house are to self-quarantine until all symptoms have disappeared for at least 24 hours
- Children until the age of 12 are allowed to play outside
- All non-essential travel of persons from third countries to Europe (all EU member states, all Schengen members and the UK) is prohibited (with limited exceptions)
- Visitors are not allowed in nursing homes.
2. Closure of Public Places for Gathering
- All events which are subject to a license are prohibited until at least 1 June 2020
- All other gatherings are prohibited until at least 28 April 2020, with the exception of:·
- Gatherings necessary for continuation of day-to-day business of companies and organizations (max. 100 people)
- Religious gatherings (max. 30 people)
- Funerals and marriages (max. 30 people)
- Municipalities have the option to prohibit the formation of groups of people (3 or more, with the exception of families) for certain areas or to close specific public and private places (e.g. beaches, squares, tourist locations)
- All courts are closed, except for urgent matters (which include hearings on bankruptcy applications)
3. Closure of Non-Essential Businesses
- Non-essential businesses are not closed, with the exception of (until at least 28 April 2020);
- Bars and restaurants (delivery and take out allowed)
- Sports clubs and gyms
- Saunas and sex establishments
- People with professions that require contact (e.g. hairdressers, nail salons, driving instructors) are prohibited from working
- In practice, most non-essential businesses have voluntarily closed.
4. School Closures
- All primary schools and daycare facilities have closed until at least 28 April 2020, except for children with parents who have a vital profession (e.g. nurses, firemen)
- The centralized exams for seniors in high school have been cancelled. The results from school exams are now decisive for graduation
- All universities have closed until at least 28 April 2020
- Some schools and universities have started with distance education