Banks do not give corona aid frivolously – Coronavirus Vienna

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According to the banks, corona loans are slow to be granted.
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Banks do not give Corona aid loans lightly, but first check the company for repayability. According to industry representatives, “zombie companies” should be avoided.

Loans must also be repayable when government-guaranteed aid loans are granted to companies against the corona crisis. This is emphasized by representatives of the domestic banking sector against criticism from companies that such loans are checked too strictly and the payments are made only very slowly. Credit advocates also warn against careless lending.

“The banks have to look at the repayability of every loan. This also applies to the guaranteed loans,” emphasized Franz Rudorfer, Managing Director of the Federal Bank and Insurance Division of the Chamber of Commerce (WKO), on Monday in the O1 “Morning Journal” of ORF Radio. But of course the government guarantee, which in some cases extends up to 100 percent, will make lending easier.

Banks warn of “zombie companies”

Companies have to make sure that expectations that cannot be fulfilled are created there, said Erste Bank Osterreich boss Peter Bosek on the radio. Because of course “the banks would have to continue to check the repayment or the traceability of the financing”. It is important to prevent disappointments from the start. Of course, it is always up to the assessment of a company’s business model whether banks could grant additional loans.

Creditreform boss Gerhard Weinhofer approves the strict award line. He warned on the radio that “so-called zombie companies are being bred. These are companies that simply don’t have a working business plan.”

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https://www.vienna.at/banken-vergeben-corona-hilfskredit-nicht-leichtfertig/6675318

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