Brussels, 13/03/2009 (Agence Europe) - The European Commission, on Thursday 12 March, authorised the second in a series of aid measures for businesses adopted by Luxembourg to deal with the current economic crisis. This measure enables the government, until 31 December 2010, to grant aid, in the form of guarantees for investment and working capital credit, to businesses likely to have a structural impact on the national or regional economy.
The scheme meets the conditions imposed by the temporary framework adopted by the Commission on 17 December 2008 giving member states additional possibilities for providing businesses with improved access to financing during the economic and financial crisis. It is based on the provisions of the temporary framework that deal with aid in the form of guarantees. The reduction in the guarantee premium will apply for a maximum of two years following the granting of the guarantees authorised before 31 December 2010. If the duration of the underlying loan exceeds two years, the safe-harbour premiums defined in Annex A to the temporary framework can be applied for an additional maximum period of eight years. No further reduction can be applied to these guarantee premiums. The guarantees granted under this aid scheme will last for ten years at most. Businesses which were in difficulty before 1 July 2008 are not eligible. This is the second measure authorised for Luxembourg under the temporary framework for state aid. On 27 February, the European Commission authorised the first in a series of aid measures which enabled Luxembourg, until 31 December 2010, to grant aid of up to €500,000 to businesses likely to have a structural impact on the national or regional economy. (O.L./transl.rt)