ABN AMRO has announced that it will provide Covid-19 affected commercial banking clients with a credit facility of a principal and/or a limit of up to €50m.
The coronavirus outbreak is having an immediate impact on the financial situation of several businesses.
The Dutch bank said it will also allow the payment of principal and interest to be deferred for six months from April through September. The clients can make the principal and interest payments at a later date.
The total loan portfolio of commercial banking was €42.6bn at the end of last year. About 40% of the loan volume concerns clients with the new measure.
Apart from these measures, ABN AMRO is also allowing businesses to apply for additional government-guaranteed loans from their banks, including under the SME credit guarantee scheme.
The bank noted that other parts of the government support package also provide businesses extra liquidity.
ABN AMRO CEO of commercial banking Daphne de Kluis said: “The deferral measure gives clients more scope in their liquidity position. And by automatically implementing it, we can make these arrangements quickly for a large group of businesses.
“We saw last week that this works well and gives clients peace of mind. We have therefore decided to raise the limit to 50 million euros. This will give larger Commercial Banking clients breathing space too.”
With headquarters in Amsterdam, ABN AMRO Bank is considered the third-largest bank in the Netherlands.