EU Approves Two Additional Estonian Aid Schemes

The European Commission has approved two Estonian State aid schemes to support companies affected by the coronavirus outbreak. The schemes were approved under the State aid Temporary Framework adopted by the Commission on 19 March 2020, as amended on 3 April 2020.

Executive Vice-President Margrethe Vestager, in charge of competition policy, said: “These aid schemes will enable Estonia to increase its support to companies affected by the coronavirus outbreak. They will further enhance access to liquidity by companies in need through the provision of loans and State guarantees on loans covering 100% of the risk in the amount of up to €800,000 per company. We work with Member States to ensure that national support measures can be put in place in a coordinated and effective way, in line with EU rules.”

The two schemes, which will share and be financed with the €1.75 billion budget estimated for the previously approved schemes, will consist in:

-A first support scheme, which will be implemented and administered by the public Foundation KredEx. Under this scheme, which will be open to companies active in all sectors, support will be granted in the form of public guarantees, loans and subsidized interest rates for loans.

-A second support scheme, which will be implemented and administered by the public Estonian Rural Development Foundation. It will focus on providing liquidity through public guarantees and loans to companies active in the agriculture, fishery and food processing sectors, as well as to companies in rural areas. 

Full Content: Europa

Want more news? Subscribe to CPI’s free daily newsletter for more headlines and updates on antitrust developments around the world.