Government responses are evolving in light of the COVID-19 pandemic. Various steps are undertaken by different financial services regulators in response to on-going developments. Financial, economic and fiscal measures currently implemented by governments provide massive liquidity and tax relief to the economy.
Baker McKenzie released a guide which summarizes some of these actions. The current version covers thirty jurisdictions across the globe and deals with the key government intervention measures being put in place across four specific areas:
- Debt. Businesses and investors must carefully consider foreign investment review risks at this highly sensitive and volatile time. Taking the time to understand the rules, which are changing day after day, and identify a regulatory strategy, including appropriate messaging and communication with the relevant governmental authorities, and the consequential impact on deal documentation.
- Foreign Investment Restrictions. In response to COVID-19, governments have announced various measures to support companies’ debt arrangements including deferred payments, guaranteed credit facilities, and government-backed loans.
- Taxation. Similarly, governments have announced new taxation measures to support businesses including deferral of payments, expedited customs clearance and suspension of interest on tax payments.
- EU State Aid Approvals (where applicable). Due to the rapid impact on EU Member States’ economies directly resulting from COVID19, the EU Commission has taken measures (the ‘Temporary Framework’), explained in the guide, which permit fast-track COVID-19 State aid approvals in certain areas including State guarantees for loans.
The latest report covers twenty jurisdictions in Europe, Middle East, and Africa; seven jurisdictions in the Americas and; three in Asia Pacific. Baker McKenzie lawyers are keeping the resource up to date, and are also adding more countries over time. Check the link regularly in order to get the latest version of the report.