On Monday 25 May, the European Commission adopted several national support schemes for companies suffering from the negative effects of the Covid-19 pandemic.
The schemes were authorised under the Temporary Crisis Framework adopted by the Commission on 19 March, as amended on 3 April and 8 May 2020.
Lithuania. The Commission has authorised Lithuanian plans to set up a fund with a target size of up to €1 billion, which will invest through debt and equity instruments in medium and large companies operating in the country and affected by the coronavirus pandemic.
Margrethe Vestager, Executive Vice President responsible for Competition Policy, noted that this was "the first scheme we have approved that will enable capital support to companies under the State aid Temporary Framework". The scheme ensures that "the state is sufficiently remunerated for the risks taxpayers assume, that there are incentives for the State to exit as soon as possible, and that the support comes with strings attached, including a ban on dividends, bonus payments as well as further measures to limit distortions of competition", she said.
This fund is intended to provide liquidity and capital support to medium and large enterprises in Lithuania. The support will take the form of subsidised debt instruments and recapitalisation instruments.
The State will provide an initial investment of €100 million in the fund and will guarantee bonds up to €400 million to be issued in order to raise additional capital for the fund.
The total State investment in the fund may therefore increase to €500 million. The fund will also aim to attract up to an additional €500 million in private investment.
Private investments will be made on different terms vis-à-vis the State: risk-sharing arrangements will be determined by means of an open, transparent and non-discriminatory call for tenders in order to minimise any possible aid granted to private investors.
The Commission found that the measure taken by Lithuania was in line with the conditions set out in the Temporary Framework.
Poland. The Commission has authorised a €2.2 billion soft loan scheme in Poland to support large companies in the context of the coronavirus pandemic. Public aid will take the form of subsidised loans on preferential terms. The scheme, which will be managed by the Polish Development Fund, is mainly aimed at large companies. However, it will also be open to certain small and medium-sized enterprises (SMEs) established in Poland, which will be eligible on the basis of criteria defined by the country.
The scheme aims to improve access to liquidity for businesses severely affected by the pandemic, helping them to continue operations, initiate investment and maintain employment.
Netherlands. The Commission has approved a Dutch guarantee scheme to support the credit insurance market in the context of the pandemic. The Netherlands has notified to the Commission a state guarantee scheme to support insurance cover for the trade of companies affected by the pandemic. The credit insurance covers companies that supply goods and services against possible non-payment by their customers.
Given the economic impact of the coronavirus pandemic, the likelihood of insurers refusing to cover a risk has become higher. The Dutch scheme ensures that a supply of credit insurance is maintained for all companies. It will avoid the need for purchasers of goods or services to pay for their purchases in advance, thereby reducing their immediate liquidity needs. (Original version in French by Lionel Changeur)