In order to overcome the economic difficulties encountered by monegasque companies, caused by the suspension of the activity due to the Covid-19 virus pandemic, the National Council adopted, at the Public Session of April 6th, 2020, a draft law relating to the commercial and professional lease contracts for tenants in the private sector.
This proposal, which concerns leases for commercial, industrial and craft use, as well as leases for office use (including subleases and management leases) and excluding certain activities that will be targeted by ministerial order, intends to involve commercial lessors in the collective effort, following the example of what the Prince's Government has already done by exempting merchants who rent premises belonging to the State from paying rent and charges for the entire 2nd quarter of 2020.
The measures include in addition to the monthly payment of the said rents, the discount of at least 20%, for one quarter, the payment of only 50% calculated on initial rental and the payment of the remaining 30% to be staggered over, at least, the two following quarters. Rents already paid during the period of suspension shall be subject to a credit note to be applied to subsequent rents.
From now on, the Government must confirm its position and the action it intends to give to this law project.
At the same time, the Monegasque Real Estate Chamber anticipated and sent H.E.M. the Minister of State proposals relating to the payment of rents during this crisis, who took note and asked the Chamber to announce to its members that the quarterly instalments normally applied to managed tenants, would be paid monthly for the 2nd quarter of 2020.
In addition, for professional tenants who have payment difficulties, solutions are studied on a case-by-case basis with the relevant lessors and additional arrangements can be considered such as discounts and/or rent deferrals.
Should difficulties remain, tenants can also contact the "Covid19 Entreprises" unit launched by the Prince's Government.
