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Commission approves €110 million Polish loan and guarantee scheme to support the economy in #Coronavirus outbreak

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The European Commission has approved a PLN 500 million (approximately €110m) Polish aid scheme to support the 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.

The new scheme will be financed by re-using resources that had been paid to companies under various financial instruments during the programming period 2007-2013 for EU structural funds and that have been repaid to the State. Under the scheme the Polish authorities will be able to grant aid to support Polish companies affected by the coronavirus outbreak by providing liquidity support in the form of guarantees on loans and subsidized interest rates for loans.

The Commission found that the scheme notified by Poland is in line with the conditions set out in the Temporary Framework. Poland estimates that about 3,000 companies will benefit from around PLN 350m (approximately €77m) loans and PLN 150m (approximately €33m) guarantees under the scheme. The Commission concluded that the Polish 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 measure under EU state aid rules. Executive Vice-President Margrethe Vestager (pictured), in charge of competition policy, said: “The €110 million Polish scheme will facilitate public guarantees on loans and loans with subsidized interest rates to support the entire Polish economy during the pandemic. Around 3,000 Polish companies operating in Poland will be able to cover immediate liquidity needs and continue their activities in these difficult times. We continue working closely with member sates 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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