Czech Republic
Measures taken in response to coronavirus (COVID-19) pandemic
Adoption date |
Type of measure |
Beneficiaries' sector specification |
Description of measure |
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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 |
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06/03/2020 |
Public guarantees |
Non-financial corporations |
Covid I: a 5bln CZK program of interest-free public loans primarily to SMEs |
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08/04/2020 |
Other measures of fiscal nature |
Other |
Limits on fees related to late payments of loans to self-employed |
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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 |
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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 |
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26/03/2020 |
Tax reliefs |
Other |
Relief of pension contributions by self-employed for 6 months (March-August 2020) |
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12/03/2020 |
Direct grants |
Non-financial corporations |
Partial wage compensations to firms ("Kurzarbeit") |
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31/03/2020 |
Direct grants |
Other |
Income compensation (one-off grants totalling 25 thousand CZK) for self-employed and partners of small companies |
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25/03/2020 |
Tax deferrals |
All non-financial sector |
deferral of payment of income taxes |
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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 |
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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. |
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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) |
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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 |
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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 |
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20/07/2020 |
Direct grants |
Non-financial corporations |
Subsidies to accommodation facilities - compensations due to closures during emergency state (March - May 2020) |
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29/06/2020 |
Direct grants |
Non-financial corporations |
Spa vouchers: 4000 CZK vouchers for spa visits for at least six nights |
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30/06/2020 |
Tax reliefs |
Non-financial corporations |
Reduction of the road tax rate |
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30/06/2020 |
Tax reliefs |
Non-financial corporations |
VAT reduction on accommodation, cultural and sports services (from 15% to 10%) |
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20/07/2020 |
Direct grants |
Non-financial corporations |
Covid culture |
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08/06/2020 |
Direct grants |
Non-financial corporations |
Covid sport |
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02/09/2020 |
Direct grants |
Households |
One-off increase of pension |
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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 |
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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 |
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14/10/2020 |
Direct grants |
Non-financial corporations |
COVID Bus and other support for transportation |
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14/10/2020 |
Direct grants |
Non-financial corporations |
COVID culture II |
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14/10/2020 |
Direct grants |
Non-financial corporations |
COVID rents II: state subsidy of 50% of the rent paid by entrepreneurs |
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01/10/2020 |
Direct grants |
Non-financial corporations |
COVID sport II |
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14/10/2020 |
Direct grants |
Non-financial corporations |
AGRICOVID Food industry |
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14/10/2020 |
Direct grants |
Non-financial corporations |
COVID - Tourism support |
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14/12/2020 |
Direct grants |
Non-financial corporations |
COVID Gastro |
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14/12/2020 |
Direct grants |
Non-financial corporations |
COVID rents III |
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14/12/2020 |
Direct grants |
Non-financial corporations |
COVID accomadation II |
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14/12/2020 |
Direct grants |
Non-financial corporations |
COVID culture III |
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31/12/2020 |
Other measures of fiscal nature |
All sectors |
Tax package II |
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19/10/2020 |
Moratoria on other claims |
Non-financial corporations |
Lex COVID Justice II |
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27/12/2020 |
Direct grants |
Non-financial corporations |
COVID sport III the ski resorts |
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18/01/2021 |
Direct grants |
Non-financial corporations |
COVID - Travel agency support |
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01/02/2021 |
Direct grants |
Non-financial corporations |
AGRICOVID Food industry II |
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08/02/2021 |
Direct grants |
Non-financial corporations |
COVID - Trade Fairs / Congresses |
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08/03/2021 |
Direct grants |
Non-financial corporations |
COVID - uncovered costs |
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08/03/2021 |
Direct grants |
Non-financial corporations |
COVID 2021 |
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01/03/2021 |
Direct grants |
Households |
Increase in a sickness benefit during quarantine |
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01/04/2021 |
Direct grants |
Households |
Increase in a child benefit due to covid |
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14/12/2020 |
Tax reliefs |
Non-financial corporations |
VAT exemption for vaccines and tests and respirators |
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13/07/2021 |
Other measures of fiscal nature |
Households |
Increase in the child tax credit due to covid |
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01/04/2020 |
Borrower-based measure |
Households |
The CNB Bank Board has relaxed its recommendation for the assessment of new mortgages.
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26/03/2020 |
CCyB |
Banking sector |
CCyB lowered from 1.75% to 1.00% with effect from 1 April 2020 |
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16/03/2020 |
Dividend distribution policy |
Banking sector |
No dividend payouts or any other steps that might jeopardise individual banks' resilience |
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16/03/2020 |
Special provisioning policy |
Banking sector |
clarification on the supervisory approach to banks' potential postponement of clients' loan instalments |
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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 |
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26/03/2020 |
Interest rate change |
Banking sector |
2W repo rate lowered by 75 bps to 1.00% |
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26/03/2020 |
Interest rate change |
Banking sector |
Lombard rate lowered to 2.00% |
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26/03/2020 |
Interest rate change |
Banking sector |
Discount rate lowered to 0.05% |
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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 |
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07/05/2020 |
Interest rate change |
Banking sector |
2W repo rate lowered by 75 bps to 0.25% |
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07/05/2020 |
Interest rate change |
Banking sector |
Lombard rate lowered to 1.00% |
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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. |
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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. |
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18/06/2020 |
CCyB |
Banking sector |
CCyB lowered from 1.00% to 0.50% with effect from 1 July 2020 |
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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. |
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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. |
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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. |