On Friday 4 November, the European Commission authorised a €16.8 billion Danish guarantee scheme to support businesses in the context of Russia's war on Ukraine. The support was authorised under the State aid Temporary Crisis Framework (amended on 28 October 2022).
The support measures, administered by the Denmark’s Export Credit Agency (EKF), will be open to electricity producers and gas shippers active in the Danish electricity and gas markets.
The guarantees are for new loans and guarantees to cover the liquidity needs of energy companies for the provision of financial guarantees to central clearing houses and have a maximum duration of five years.
The maximum amount of the guarantee per company will cover the liquidity needs arising from the activity on the energy markets during the 12 months following the granting of the aid. Liquidity needs will be estimated on the basis of a ‘self-certification’ by the energy companies.
The Commission found the Danish guarantee scheme to be in line with the conditions set out in the temporary crisis framework.
Other Danish aid. On the same day, the Commission approved another Danish state aid of €1.34 billion to support energy-intensive companies in the context of the war. The aid will take the form of loans with subsidised interest rates. The measure will be open to small and medium-sized enterprises (SMEs) and large energy-intensive companies in all sectors. Credit and financial institutions will be excluded. (Original version in French by Lionel Changeur)