Companies in difficulty will be able to repay their PGE over 10 years

Representatives of small retailers and craftsmen, as well as employers' organizations, had been waiting for this decision for a long time. The Ministry of the Economy and Finance, the French Banking Federation and the Banque de France have signed an agreement enabling companies in difficulty to repay their state-guaranteed loans (PGE) over a 10-year period.

Deferring the first instalments and extending the repayment period for PGEs

697,000 companies, including a large number of very small businesses, have obtained state-guaranteed loans to help them cope with the health crisis. The total amount lent under this scheme now stands at 143 billion euros.

Initially, the first instalments of EMPs contracted at the start of the crisis were to be paid from March 2021. However, as the Covid-19 pandemic continued, the government decided to extend the deadline to March 2022. Companies were authorized to repay their PGE over a maximum period of 6 years.

In the current context of epidemic recovery, and in the face of numerous complaints from employers' organizations and representatives of small retailers and craftsmen, the government has once again decided to postpone the first repayment dates to the end of 2022, and to extend the maximum repayment period to 10 years for companies in difficulty.


A minority of companies concerned

A market agreement has been signed by the Ministry of the Economy and Finance, the Banque de France and the French Banking Federation.

" This morning, we signed a local agreement enabling us to use credit mediation to restructure state-guaranteed loans for small businesses that may be experiencing particularly serious repayment difficulties ", declared Bruno Le Maire on January 19, following his meeting with François Villeroy de Galhau, Governor of the Banque de France, and Nicolas Théry, Chairman of the French Banking Federation.

Unlike previous arrangements, only companies in difficulty will be able to benefit from this deferral of monthly payments. According to the Minister of the Economy and Finance, only between 25,000 and 30,000 businesses will be affected by this new measure. Most of these would be restaurant owners, craftsmen and shopkeepers.


Initially, Bercy envisaged limiting this deferral option to companies with an EMP of up to 25,000 euros. To include medium-sized companies too, the ceiling was raised to 50,000 euros.

Companies with an EMP of up to €50,000, and facing financial difficulties, can apply to the Banque de France's public credit mediation service for assistance. Requests will not be accepted automatically, and will be subject to prior review.

As for companies with an EMP of over €50,000, they will have to turn to the departmental crisis exit councils, set up in June 2021, which will redirect them if necessary to credit mediation.


According to the Governor of the Banque de France, more than 95% of companies will be able to repay their PGE according to the conditions initially laid down.