State Guaranteed Loans (PGEs) to be extended until the end of June 2022

Europe 1 with AFP 5:50 p.m., November 8, 2021

The government will table an amendment to the 2022 budget proposal on Tuesday to extend the state guaranteed loan scheme (PGE) by six months until the end of June 2022, AFP learned from Bercy on Monday, confirming information du

.

"We are extending the distribution of EMPs by six months"

"All companies that had prospects before the health crisis must take full advantage of the recovery. This is why we are extending the distribution of EMPs by six months," Economy Minister Bruno Le Maire told daily.

This extension must still, to be effective, be endorsed by the European Commission, which should decide on November 17, according to

.

 More than 690,000 PGEs have been granted for more than 140 billion euros since the start of the health crisis in March 2020, making it possible to replenish the cash flow of companies in the face of a sudden drop in their activity.

To respond to the emergency, the government had put in place an exceptional mechanism of guarantees of up to 300 billion euros. 

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60% of PGE had not been consumed, or only a minority

But the cash flow of many companies did not ultimately deteriorate with the crisis.

This summer, according to the last quarterly barometer published by the public bank Bpifrance and the Rexecode institute, 60% of PGEs had not been consumed, or only a minority.

The situation is however very disparate according to the companies and the sectors of activity.