Commission approves Dutch guarantee scheme of up to €10 billion to support the economy in context of #Coronavirus outbreak

| April 24, 2020

The European Commission has approved a Dutch loan guarantee scheme of up to €10 billion to support the Dutch economy in the context of the coronavirus outbreak. The scheme was approved under the state aid Temporary Framework adopted by the Commission on 19 March 2020, as amended on 3 April 2020.

In order to address companies’ liquidity shortages stemming from the coronavirus outbreak, the scheme only covers loans granted by banks as of 24 March 2020. The Dutch State will guarantee 90% of new loans to small and medium-sized enterprises (SMEs) and 80% of new loans to large enterprises. Banks are obliged to grant a 6-month moratorium on loan repayments to borrowers before they can invoke the State guarantees on loans provided under the scheme.

The Commission found that the scheme notified by the Netherlands is in line with the conditions set out in the Temporary Framework. The Commission concluded that the Dutch measure is necessary, appropriate and proportionate to remedy a serious disturbance in the economy of a member state, in line with Article 107(3)(b) TFEU and the conditions set out in the Temporary Framework.

On this basis, the Commission approved the measures under EU state aid rules. Executive Vice President Margrethe Vestager, in charge of competition policy, said: “The Dutch scheme, with a budget of up to €10 billion, will help companies cover their immediate working capital and investment needs in these difficult times to continue their activity during and after the coronavirus outbreak. We continue working closely with member states to ensure that national support measures can help mitigate the economic impact of the coronavirus outbreak.”

The full press release is available online.

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