Slovenia’s second round of support for companies and employees will consist of a stimulus package designed provide liquidity to businesses. Parliament approved €2bn in loan guarantees provided to by commercial banks. Up to 80 percent of the principal of loans to small and medium-sized companies will be guaranteed, while larger guarantees for larger companies will max out at 70 percent. The guarantees will be good for five years on loans issued between March 12 and December 31, 2020.
Prime Minister Janez Jansa said the funds would be enough to keep the companies from going back on their promise to maintain production and avoid layoffs in the short-term. Whether it will be enough for the medium-term depends on how severe the impact of the crisis is and how long the pandemic lasts. Initially, the state was only providing support to companies who claimed their revenues would fall by 20 percent or more compared to the same period in 2019, but this limit has been lowered to 10 percent.
