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Commission approves €1.75 billion #Estonia schemes to support economy in #Coronavirus outbreak

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The European Commission has approved two Estonian state aid schemes to support the Estonian economy in the context of the coronavirus outbreak. The schemes were approved under the State aid Temporary Framework to support the economy in the context of the COVID-19 outbreak adopted by the Commission on 19 March 2020.

Estonia notified to the Commission two support schemes under the Temporary Framework: (i) the first support scheme will be implemented and administered by the public Foundation KredEx. It will be open to all companies, subject to certain exceptions defined by Estonia; (ii) the second scheme will be implemented and administered by the public Estonian Rural Development Foundation.

It will be open to companies in all sectors and for the whole territory of Estonia. Under both schemes, with a total estimated budget of €1.75 billion, the support will consist either in the provision of public guarantees on existing or new loans or in the granting of loans at favourable terms. The aim of the schemes is to help businesses cover immediate working capital or investment needs.

The Commission concluded that the measures are 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 €1.75 billion Estonian schemes will enable the provision of public guarantees on loans and the granting of loans at favourable terms. They will help businesses cover immediate working capital and investment needs, and continue their activities in these difficult times. We continue working closely with member states to ensure that national support measures can be put in place in a timely, coordinated and effective way, in line with EU rules.”

The full press release is available online.

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