State-guaranteed credit financing
of operating expenses

Who is the COVID III Scheme intended for?

  • Sole traders (i.e. self-employed entrepreneurs) and legal entities doing business in the Czech Republic who have a maximum of 500 employees and satisfy the Credit Applicant Eligibility Criteria..

What is the basic setup of the COVID III Scheme?

  • This new credit financing facility for operating expenses takes the form of an overdraft, revolving credit, or instalment credit.
  • Guaranteed credit can be granted for up to 3 years (the duration of the state guarantee) if the credit facility is arranged by 31 December 2020.
  • The maximum amount of the guaranteed credit facility is CZK 50,000,000, subject to the Transaction Eligibility Criteria.
  • Credit is granted in CZK.
  • Specific financing conditions (the interest rate, fees, security, etc.) will be arranged on a case-by-case basis.
I’m interested in operational financing under the COVID III Scheme


I am interested in obtaining operating credit under the COVID III Scheme. Although my company does not have more than 500 employees, it is part of a group where the aggregate number of employees exceeds the permitted limit. Is my company still eligible for COVID III credit?

YES. The decisive criterion for the COVID III Scheme is the number of employees per company (per entity with its own company ID number). Consolidated data is not taken into account here.

Is it possible for me to obtain COVID III credit for one company from multiple banks, provided that I do not exceed the maximum limit of CZK 50 million?

NO. One company may obtain COVID III credit only from one bank and under one credit agreement.

At this moment in time, I am unable to estimate my actual need for COVID III operating credit, or the amount of such credit I require, because of how the economic impacts of the COVID epidemic are evolving. When is the deadline for credit applications and can I apply for an increase at a later date?

The credit agreement with the bank must be concluded by the end of 2020. The amount of the credit facility can be increased during this period (by entering into an amendment to the loan agreement) up to the maximum limit of CZK 50 million.

I am currently drawing on operating credit from other banks. Can I still apply for COVID III credit with your bank?

Yes, unless prevented by the binding terms and conditions set forth by your financing bank. If such conditions are in place, you should obtain your financing bank’s approval.

Can I use COVID III credit to repay any of my existing loans?

This credit cannot be used to refinance other borrowings before their final maturity date. As a matter of principle, it is for financing operating expenses. The application must state that the Final Beneficiary is applying for Debt Financing in order to address current or reasonably foreseeable economic problems due to the effects of the spread of SARS-CoV-2 coronavirus.

If I draw on COVID III credit with a standard one-year maturity, will it be possible to extend that maturity for another year, since this is usual for operating credit facilities?

YES. Operating credit granted for 1 year may be extended (under an amendment to the credit agreement), provided that the final maturity of the credit does not exceed 3 years (which is when the ČMZRB guarantee expires). If both parties agree, the credit may continue even after 3 years have expired (i.e. after the ČMZRB guarantee has been withdrawn).

Can COVID III credit be granted in the form of a credit facility encompassing multiple credit products (an overdraft, revolving credit, etc.) with different sub-limits for drawing, etc.?

YES. The COVID III Scheme permits this operational financing structure.

Is the interest on COVID III credit granted by ČMZRB subsidised?

NO. The COVID III Scheme does not include this form of government support.

Will the bank require any additional security for COVID III credit since it is already guaranteed by ČMZRB?

Security is a matter that the bank and the applicant will agree on separately. The ČMZRB guarantee only covers a part of the principal, not the outstanding interest or fees.

Do applicants need to meet any specific requirements or conditions in order to obtain COVID III credit?

YES. Credit applicants (legal entities) must have their beneficial owner entered in the register of data on beneficial owners, which is maintained in accordance with the relevant legislation.