However, the government said yesterday that it will introduce temporary rules that will cancel liquidation petitions and statutory claims already met by landlords during the crisis, and they will also not be allowed to use CRAR – collection of rent arrears commercial, unless the tenant is more than 90 days late. For the uninitiated, CRAR is a protocol that allows landlords to seize property from their tenants instead of unpaid rent. A little respite for those who worry about the behavior of their owner.
French finance minister says companies with offshore subsidiaries or complex tax affairs will not be eligible for bailout after his country announced a huge stimulus package like any other country hit by a pandemic. Bruno Le Maire said on Franceinfo radio yesterday: “It goes without saying that if a company has its tax base or its subsidiaries in a tax haven – and I want to say this with great force – it cannot benefit from the ‘state financial aid’.
He lobbied further, adding that state-aided companies would not be allowed to buy back their own shares or pay dividends during the crisis. This seems entirely correct in the sense that state aid during the pandemic is largely designed to simply keep the economy afloat, not to help businesses consolidate their own balance sheets or do business like habit with the taxpayer’s penny. A similar announcement has already been made in Denmark, and we think it would be fair for our own government to do too.
Insurers should face their largest losses ever because of the pandemic, according to the boss of Lloyds of London. John Neal said payments from the insurance industry will make Hurricane Katrina and September 11 look like a little fries. This is not surprising, since policies covering everything from canceled events to flight and vacation, income protection and management responsibilities are normal products with a large number of customers. Like all other industries, insurance could not have predicted a scenario in which dozens of its finely counterbalanced policies could be called up simultaneously.
A row is preparing however in a coverage area, and it is a business interruption. We all know the famous “acts of God” exit clauses that prevent insurers from paying in the event of floods or earthquakes, but since the foreclosure was imposed by the government – and such a thing is unprecedented. – some insurers say that their liability is released. It is not the same thing, they argue, because a retail store is burglarized and put in the trash and needs to be refitted for four weeks, which these policies are intended for. In the cycle, Neal summed up the difficult situation in his sector quite succinctly:[It is] without a doubt the biggest insurance challenges the industry has ever faced, I think in a way. “