Connect with us

coronavirus

Commission approves two additional Estonian schemes to support companies affected by #Coronavirus outbreak

SHARE:

Published

6 years ago

on

We use your sign-up to provide content in ways you've consented to and to improve our understanding of you. You can unsubscribe at any time.

The European Commission has approved two Estonian state aid schemes to support companies affected by the coronavirus outbreak. The schemes were approved under the state aid Temporary Framework adopted by the Commission on 19 March 2020, as amended on 3 April 2020.

The two schemes, which will share and be financed with the €1.75 billion budget estimated for the previously approved schemes, will consist in (i) a first support scheme, which will be implemented and administered by the public Foundation KredEx, and (b) a second support scheme, which will be implemented and administered by the public Estonian Rural Development Foundation.

The schemes aim at enhancing access to liquidity by those companies, which are most severely affected by the economic impact of the coronavirus outbreak, thus helping them to continue their activities, start investments and maintain employment. The Commission found that the two Estonian schemes are in line with the conditions set out in the Temporary Framework. The Commission therefore 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: “These aid schemes will enable Estonia to increase its support to companies affected by the coronavirus outbreak. They will further enhance access to liquidity by companies in need through the provision of loans and state guarantees on loans covering 100% of the risk in the amount of up to €800,000 per company. We work with member states to ensure that national support measures can be put in place in a coordinated and effective way, in line with EU rules.”

The full press release is available online. 

Share this article:

Share this:
Related Topics:
EU Reporter publishes articles from a variety of outside sources which express a wide range of viewpoints. The positions taken in these articles are not necessarily those of EU Reporter. Please see EU Reporter’s full Terms and Conditions of publication for more information EU Reporter embraces artificial intelligence as a tool to enhance journalistic quality, efficiency, and accessibility, while maintaining strict human editorial oversight, ethical standards, and transparency in all AI-assisted content. Please see EU Reporter’s full A.I. Policy for more information.
Advertisement

Trending