On Friday 10 June, the European Commission authorised a €400 million Portuguese scheme to support strategic companies affected by the Covid-19 pandemic. This scheme has been approved under the State aid Temporary Framework and is included in the National Recovery and Resilience Plan.
The aid of €400 million aims to support the solvency of viable strategic non-financial enterprises operating in Portugal and affected by the pandemic. The support will take the form of: - of equity instruments (including ordinary and preferred shares); - hybrid instruments (convertible bonds); - a combination of equity and hybrid instruments. The amount of investment per company is in principle limited to €10 million.
Assistance will be provided through the Strategic Recapitalisation Programme of the Capitalisation and Resilience Fund. The Fund is managed by Banco Português de Fomento, S.A. which is the National Promotional Bank.
The Portuguese support is in line with the conditions of the temporary framework: - support will be limited to the amount necessary to ensure the viability of the beneficiaries and to restore their capital position prior to the Covid-19 pandemic; - adequate remuneration for the State is provided for; - the aid will be granted no later than 30 June 2022. (Original version in French by Lionel Changeur)