Unpaid Covid loans: The federal government lost far less money than expected

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According to the Federal Council, the billions in support to Swiss companies during the Corona crisis were worth it. The federal government’s effective losses due to the Covid-19 loans amount to 62 million francs so far, corresponding to a loss rate of 0.37 percent. The federal government had estimated a loss rate of 10 percent.

This can be found in the interim report on the Covid-19 solidarity guarantee loans, which the Federal Council approved on Wednesday. It can be assumed that the loss rate will increase in the future. However, there are currently no signs that the loss rate estimated in the past will be achieved.

17 billion francs flowed to companies

In total, almost 140,000 Covid-19 loans were provided during the first Corona wave in the spring and summer of 2020 for an amount of approximately 17 billion francs. Nearly every fourth company received money from the federal government. According to the interim report, the costs of the program so far are proportional to the social benefits it delivers.

Due to the rapid implementation, “a certain potential for abuse was unavoidable,” the Federal Council said. However, the interim results show that the susceptibility to abuse so far can be classified as “relatively low”. In June 2023, 0.3 percent of all loans granted had been found guilty of abuse.

1.3 million jobs secured

With the help of the loans, the federal government was able to secure 1.3 million jobs, the report also shows. Moreover, bankruptcies could partly have been prevented. A final assessment of the Covid-19 Solidarity Guarantee Program cannot be made until 2031 at the earliest, after the loan program has ended. (SDA)

Source:Blick