Czech Republic

Adoption date

Type of measure

Beneficiaries' sector specification

Description of measure

01/04/2020

Public moratoria

All non-financial sector

Deferment of repayments of loans to non-financial sector of clients negatively affected by the current situation until the end of October 2020

06/03/2020

Public guarantees

Non-financial corporations

Covid I: a 5bln CZK program of interest-free public loans primarily to SMEs

08/04/2020

Other measures of fiscal nature

Other

Limits on fees related to late payments of loans to self-employed

24/03/2020

Public guarantees

Non-financial corporations

Covid II state guarantees to bank loans provided to businesses and self-employed totalling 20bln CZK, up to 80% of principal amount, maximum loan amount 15mln CZK, subsidized interest up to 1mln CZK

12/03/2020

Direct grants

Households

Social care contributions for employees and self-employed that take care of kids under 13 years of age due to foreclosure of education facilities

26/03/2020

Tax reliefs

Other

Relief of pension contributions by self-employed for 6 months (March-August 2020)

12/03/2020

Direct grants

Non-financial corporations

Partial wage compensations to firms ("Kurzarbeit")

31/03/2020

Direct grants

Other

Income compensation (one-off grants totalling 25 thousand CZK) for self-employed and partners of small companies

25/03/2020

Tax deferrals

All non-financial sector

deferral of payment of income taxes

18/05/2020

Public guarantees

Non-financial corporations

Covid III state guarantees to bank loans provided to businesses and self-employed totalling 150bln CZK, up to 90% of principal amount, maximum loan amount 50mln CZK, duration of the guarantee up to 3 years

26/06/2020

Direct grants

Non-financial corporations

Covid rents: state subsidy of 50% of the rent paid by entrepreneurs, which had to be closed due to the state of emergency, provided that the tenant and the landlord agreed on a 30% rent discount.

01/06/2020

Tax reliefs

Non-financial corporations

Program Antivirus C: relief of social contributions paid by small employers for 3 months (June-August 2020)

19/06/2020

Tax reliefs

All non-financial sector

Loss carryback: possibility to utilize a tax loss as a deductible item for two preceding tax bases

24/04/2020

Public guarantees

Non-financial corporations

Covid plus state guarantees to bank loans provided to businesses totalling 142bln CZK, up to 80% of principal amount, maximum loan amount 2bln CZK, duration of the guarantee up to 5 years

20/07/2020

Direct grants

Non-financial corporations

Subsidies to accommodation facilities - compensations due to closures during emergency state (March - May 2020)

29/06/2020

Direct grants

Non-financial corporations

Spa vouchers: 4000 CZK vouchers for spa visits for at least six nights

30/06/2020

Tax reliefs

Non-financial corporations

Reduction of the road tax rate

30/06/2020

Tax reliefs

Non-financial corporations

VAT reduction on accommodation, cultural and sports services (from 15% to 10%)

20/07/2020

Direct grants

Non-financial corporations

Covid culture

08/06/2020

Direct grants

Non-financial corporations

Covid sport

02/09/2020

Direct grants

Households

One-off increase of pension

14/10/2020

Direct grants

Households

Social care contributions for employees and self-employed that take care of kids under 10 years of age or dependent persons due to foreclosure of education facilities, forced quarantine to a child or someone in the family

05/10/2020

Direct grants

All non-financial sector

Income compensation (one-off grants totalling 25 thousand CZK) for self-employed and partners of small companies

14/10/2020

Direct grants

Non-financial corporations

COVID Bus and other support for transportation

14/10/2020

Direct grants

Non-financial corporations

COVID culture II

14/10/2020

Direct grants

Non-financial corporations

COVID rents II: state subsidy of 50% of the rent paid by entrepreneurs

01/10/2020

Direct grants

Non-financial corporations

COVID sport II

14/10/2020

Direct grants

Non-financial corporations

AGRICOVID Food industry

14/10/2020

Direct grants

Non-financial corporations

COVID - Tourism support

14/12/2020

Direct grants

Non-financial corporations

COVID Gastro

14/12/2020

Direct grants

Non-financial corporations

COVID rents III

14/12/2020

Direct grants

Non-financial corporations

COVID accomadation II

14/12/2020

Direct grants

Non-financial corporations

COVID culture III

31/12/2020

Other measures of fiscal nature

All sectors

Tax package II

19/10/2020

Moratoria on other claims

Non-financial corporations

Lex COVID Justice II

27/12/2020

Direct grants

Non-financial corporations

COVID sport III the ski resorts

18/01/2021

Direct grants

Non-financial corporations

COVID - Travel agency support

01/02/2021

Direct grants

Non-financial corporations

AGRICOVID Food industry II

08/02/2021

Direct grants

Non-financial corporations

COVID - Trade Fairs / Congresses

08/03/2021

Direct grants

Non-financial corporations

COVID - uncovered costs

08/03/2021

Direct grants

Non-financial corporations

COVID 2021

01/03/2021

Direct grants

Households

Increase in a sickness benefit during quarantine

01/04/2021

Direct grants

Households

Increase in a child benefit due to covid

14/12/2020

Tax reliefs

Non-financial corporations

VAT exemption for vaccines and tests and respirators

13/07/2021

Other measures of fiscal nature

Households

Increase in the child tax credit due to covid

01/04/2020

Borrower-based measure

Households

The CNB Bank Board has relaxed its recommendation for the assessment of new mortgages.
The limit on the LTV ratio (the size of the loan relative to the value of the pledged property) has been increased to 90% (from 80%). A 5% exemption to mortgages with higher LTVs applies. The previous option to provide a maximum of 15% of the total volume of mortgages with an LTV between 80% and 90% has been abolished. The changes to the LTV ratio do not apply to "investment" mortgages.

The limit on the DSTI ratio (total debt service relative to net monthly income) has been increased to 50% (from 45%). A 5% exemption to mortgages with higher DSTI applies.

The current limit on the DTI ratio (debt relative to net income) has been cancelled.

26/03/2020

CCyB

Banking sector

CCyB lowered from 1.75% to 1.00% with effect from 1 April 2020

16/03/2020

Dividend distribution policy

Banking sector

No dividend payouts or any other steps that might jeopardise individual banks' resilience

16/03/2020

Special provisioning policy

Banking sector

clarification on the supervisory approach to banks' potential postponement of clients' loan instalments

16/03/2020

Market liquidity

Banking sector

Higher frequency of liquidity-providing MP repo operations - 3x a week instead of the current weekly frequency, banks' bids to be fully satisfied at the 2W repo rate

26/03/2020

Interest rate change

Banking sector

2W repo rate lowered by 75 bps to 1.00%

26/03/2020

Interest rate change

Banking sector

Lombard rate lowered to 2.00%

26/03/2020

Interest rate change

Banking sector

Discount rate lowered to 0.05%

24/03/2020

Market liquidity

Other

new legislation temporary broadens the range of counterparties (incl. to pension funds, insurance companies and investment funds) and maximum instrument maturity for CNB's operations on secondary markets

07/05/2020

Interest rate change

Banking sector

2W repo rate lowered by 75 bps to 0.25%

07/05/2020

Interest rate change

Banking sector

Lombard rate lowered to 1.00%

07/05/2020

Market liquidity

Banking sector

The CNB has broadened the range of eligible collateral for monetary policy operations used to provide liquidity to banks by including mortgage bonds. Liquidity-providing operations with three-month maturity were also introduced for credit institutions.

07/05/2020

Market liquidity

Other

For preventive reasons, the CNB has prepared a liquidity-providing instrument for some non-bank entities (insurance companies, pension management companies, management companies) licensed by the CNB as from 18 May 2020. These institutions will now be able to obtain liquidity in the form of short-term (2W) credit from the CNB 2x a week, bids to be fully satisfied at the 2W repo rate + 20 bp. Such loans will be secured on the part of these financial institutions by the same securities that are used as standard collateral by credit institutions in liquidity-providing CNB repo operations, i.e. above all Czech government bonds.

18/06/2020

CCyB

Banking sector

CCyB lowered from 1.00% to 0.50% with effect from 1 July 2020

18/06/2020

Borrower-based measure

Households

The CNB Bank Board has relaxed its recommendation for the assessment of new mortgages.

The limit on the DSTI ratio (total debt service relative to net monthly income) has been cancelled.

22/03/2020

Dividend distribution policy

Other

The CNB has called on insurance companies and pension management companies to withhold dividend payments or refrain from other steps which might jeopardise their capital resilience.

18/12/2020

Dividend distribution policy

Banking sector

The Czech National Bank will assess the dividend payout proposals of financial institutions individually, evaluating their capitalisation, risk profile, business model and other important factors. It will set dividend payout limits in a conservative manner in accordance with the ESRB Recommendation. The CNB assumes that financial institutions will submit proposals only after receiving their audited results for 2020. It will discuss each case in the supervisory college for the relevant financial group before issuing its opinion.