On Wednesday 26 October, the European Commission approved a Hungarian loan and guarantee scheme worth €1.25 billion to support small and medium-sized enterprises (SMEs) and large companies in the context of Russia’s war against Ukraine.
The scheme was approved under the State aid Temporary Crisis Framework.
Aid under this measure will take the form of loans with subsidised interest rates and guarantees on loans granted by the Export-Import Bank Private Limited Company Eximbank, the State-owned export credit agency. The measure will be open to companies active across sectors affected by the current geopolitical crisis, with the exception of financial institutions.
The conditions set out in the Temporary Crisis Framework have been met.
In the case of aid in the form of guarantees, the maturity of the loans may not exceed six years, the maximum coverage cannot exceed 90% of the underlying loan and the guarantee premiums respect the minimum levels that have been set.
When it comes to aid in the form of loans, the maturity of the loans may not exceed eight years, the interest rates on the loans respect the minimum levels and the financial intermediary, in the case of indirect loans, will pass on the advantage to the beneficiary as far as possible. Finally, the loans and guarantees will be granted no later than 31 December 2022. (Original version in French by Lionel Changeur)