The European Commission authorised on Tuesday 5 May a Czech guarantee scheme worth around €5.2 billion for large exporting companies whose activities are affected by the Covid-19 pandemic.
The scheme was approved under the Temporary Framework for State Aid adopted by the Commission on 19 March, as amended on 3 April 2020.
According to the Czech support measure, large companies with at least 20% of their annual sales derived from exports will be eligible for this support in the form of State guarantees on loans.
The provision is designed to limit the risks associated with the granting of credit to exporting companies most severely affected by the economic impact of the Covid-19 pandemic and thus ensure the continuation of their activities.
Belgium. The Commission also approved on 5 May a subordinate loan scheme designed to support businesses, in particular start-ups, expanding firms and small and medium-sized enterprises operating in the Flemish Region. This measure, which has a budget of €250 million, is intended to meet the financing needs of these businesses, which are at a crucial stage in their economic development. Subordinate loans will not exceed €800,000 per company (except in the primary agricultural sector and in the fisheries and aquaculture sector, where limits of €100,000 and €120,000 per company respectively apply).
Greece. A €10 million Greek scheme to support companies in the primary production of floricultural products was validated on 5 May.
Denmark. Denmark has notified the Commission of two schemes of subsidised loans for start-ups. The first scheme is aimed at start-ups, while the second is aimed at companies that have already received venture capital. These schemes have a total budget of approximately €296 million. The aid, in the form of loans, will be administered by the Danish State Public Investment Fund Vækstfonden.
In addition, the Commission found that Denmark’s plans to prolong and modify a previously approved business compensation scheme were in line with EU State Aid rules.
The existing scheme was approved on 8 April. Denmark has notified the following changes: – companies that have suffered a reduction in income of more than 35% due to the pandemic during the period from 9 March to 9 June 2020 are now eligible for aid; – the scheme will also be accessible to public enterprises; – the maximum amount of aid per enterprise has been increased from €8 million to €15 million. The duration of the scheme is extended until 8 July 2020 and the budget is increased by €3 billion, bringing the total budget to €8.4 billion. (Original version in French by Lionel Changeur)