France - Covid-19: Toll-free number to help businesses in difficulty

The Covid-19 threats and the panic it stirs up is only just beginning. Trade has already been severely weakened in recent months by the unprecedented demonstrations of yellow jackets and protests against the pension reform. Stated in the following is the overall message of the joint press release co-signed recently by Procos, l'Alliance du Commerce, la Fédération Nationale de l'Habillement, la Fédération du Commerce Coopératif et Associé and the Fédération Française de la Franchise.

"Already, since the transition to stage 2 on 29 February, a rapid acceleration in the drop in the number of visitors and in turnover has been observed throughout the country, both in stores located in large cities and in more rural areas," the press release states, adding, "In tourist areas and those directly affected by the virus, this drop has already led to partial or total store closures.”

The federations are seeking support from the government, banks and donors

The demands from the statement are all the more precise as the threat is growing and the move to stage 3 seems imminent. Threat confirmed on Wednesday, March 11 by the World Health Organization. The WHO has indeed declared that the Coronavirus epidemic could now be characterized as a pandemic.

The press release issued by the five federations stated the following: "At this stage, it is urgent to respond to the cash flow difficulties encountered by companies. "By sounding the alarm, the trade federations want to obtain government aid. This aid would take the form of automatic tax and social security relief for the duration of the crisis.Immediate recourse to partial activity is also requested.”

Then, the federations also call for solidarity among lenders, bankers and insurers: "The Federations call on all banking players to show diligence in maintaining payment and cash-flow facilities, and on insurance players to guarantee any operating losses linked to this case of force majeure". BPI, the public investment bank, has responded to this call by launching a toll-free number to help companies in difficulty.

This toll-free number - 0 069 370 240 - will be used to activate an ‘airbag’ for cash management. The BPI will guarantee the loans that banks grant to a company, to open a shop for example. If a company calls this freephone number and reports its difficulties because of the epidemic, the BPI will be able to release aid and liquidity facilities within a week or so. The BPI will also be able to reassure banks to extend loans and lower monthly payments by guaranteeing 70 percent of the loan for businesses. Finally, donors are also being called upon to help. The press release calls on them to grant retailers rent reductions and flexibility in the payment of rents and charges.

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