On Tuesday 14 September, the European Commission authorised France’s plans to set up a €3 billion fund that will invest through debt, hybrid and equity instruments in companies affected by the coronavirus outbreak. The scheme was approved under the State aid Temporary Framework.
The support package will be implemented through a fund, which goes under the name ‘Transition Fund for enterprises affected by the Covid-19 outbreak’, with a budget of €3 billion.
Under the scheme, the aid will take the form of subordinated or participating loans and recapitalisation measures, in particular hybrid capital instruments and preferred shares without voting rights. The measure is open to companies established in France and active in all sectors (except the financial one), which were viable before the Covid-19 pandemic and which have demonstrated the long-term sustainability of their business model. Between 50 and 100 companies are expected to benefit from this scheme.
Support will be granted no later than 31 December 2021. Finally, only companies that were not considered to be in financial difficulty already on 31 December 2019 are eligible for aid under this scheme. (Original version in French by Lionel Changeur)