The text on this page was automatically translated and hence may differ from the original. No rights can be derived from this translation.
Secretary of State for Economic Affairs Mona Keijzer presented to the House of Representatives on 28 October the evaluation of the GO scheme carried out by Dialogic in collaboration with Erasmus University (see letter to parliament). This scheme (established in 2009) aims to stimulate lending by providing a state guarantee on bank loans. The scheme aims to encourage banks to lend to medium-sized, and fundamentally healthy, businesses struggling to obtain financing. Banks are the primary users of this scheme. During the entire research period of 2009 - 2018, the GO facility provided 369 guarantees to 316 unique businesses. During this period, €2.8 billion worth of loans were contracted under the GO. Therefore, the State provided €1.4 billion in guarantees during that period. 92% of the businesses using the GO scheme are classified as SMEs in the year of application. A widened GO-Coronamodule (GO-C) has now been introduced based on the temporary Corona State Aid framework of the European Commission.
Dialogic has assessed the GO scheme as a legitimate instrument. The scheme has been deemed predominantly effective and helps businesses with high-quality plans to secure funding (on acceptable terms) that they would not have been able to otherwise. However, there are indications that financial additionality is highest during times of crisis and decreases during periods of economic growth. Regarding economic additionality, there are signs of positive effects on the performance of businesses with a GO. We observe a strong effect on cumulative growth in assets and more short-term positive effects on net turnover and payroll. These results largely align with research on similar guarantee schemes abroad, but they should be interpreted with caution from a methodological standpoint regarding the GO scheme. It was also determined that the GO scheme is being executed (increasingly) efficiently and professionally, is currently cost-effective (as required by Europe), and entails limited administrative burdens for users (financial institutions and businesses).
Ten recommendations have been made for potential adjustments to the GO scheme, including allowing alternative (non-banking) financiers access to the GO, maintaining flexibility in the guarantee cap, and suggesting a stronger emphasis on financing with a social impact. The Secretary of State indicates that she will respond to the adjustments suggested by Dialogic (and inform the House) after discussing them with RVO.nl, banks, and non-banking financiers.
Curious to learn more about this research? Contact Pim den Hertog.