The European Commission approved, on Friday 7 October, a €5 billion Finnish subsidised loan umbrella scheme to support municipal electricity producers and suppliers in the context of Russia's war against Ukraine.
The scheme was approved under the State aid Temporary Crisis Framework.
The subsidised loan scheme aims to provide liquidity support to municipal electricity producers and suppliers. The measure will be open to municipal electricity companies that produce or supply electricity, engage in hedging operations and are affected by the current crisis.
The aid will take the form of subsidised loans to be granted either by Municipality Finance Plc or by Finnish municipalities. Eligible loans, with a maximum maturity of three years, must relate to working capital needs.
The maximum loan amount per beneficiary may not exceed either 15% of the beneficiary’s average total annual turnover over the last three closed accounting periods or the liquidity needs derived from the additional collateral requirements for the coming 12 months. (Original version in French by Lionel Changeur)