Offices balk at state-led dividend scrap

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By Silas Brown
03 Jun 2020

Several market players have said family offices in need of cash are struggling to come to terms with restrictions on companies that have taken state aid to survive the coronavirus pandemic paying dividends. This has made other forms of debt, such as Schuldscheine, with no bans on dividend payments, more attractive.

In France, Germany and the UK, as well as a number of other European countries, state aid programmes are contingent on those borrowers scrapping or restricting dividend payments.

“If you do not have the cash to pay tax or social security charges, then you also don’t have cash ...

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