Difficulties in repaying state-guaranteed loans are resurfacing through tourism professionals. The latter are demanding new deadlines for reimbursing the aid paid during the health crisis.
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Tourism companies are sounding the alarm. While they acknowledge having been supported by the state during the pandemic, they say they are now faced with the prospect of “debt wall”, this moment when you have to repay when the money has not returned in sufficient quantity to the coffers. While activity is picking up again, why this demand from the tourist industry? Tour operators, tour operators, coach operators, event companies ensure that the end of the health crisis is only just beginning. It is not yet frank and massive. The PGEs granted by the State to tourism companies total 11.5 billion euros to date. The sum is colossal.
The State is now proposing a six-month lag of the first deadline of the PGE and the staggering of repayments up to ten years, but only for the companies most in difficulty and which have borrowed less than 50,000 euros. However, for travel operators, for example, the average amount of the PGE is 270,000 euros. Repayment capacity is unrealistic.
Tourism professionals are asking for a study of situations on a case-by-case basis, with a very strong argument: to prepare for the end of the crisis, companies need to invest in the production tool, to modernize it, renovate it. Implied: the money used to reimburse the PGE will not be put into the investment. This is called the debt trap. For the company, and for the State. The company must repay loans at the risk of no longer being able to invest. As for the State, should it invent new stratagems to continue to support the productive fabric, at the risk of increasing the debt? You have four hours ! The next President of the Republic, whoever he is, will be five years old… Which will not necessarily be more comfortable.