Featured Product

    EC Approves Belgian Guarantee Scheme to Support SMEs Affected by COVID

    July 15, 2020

    EC approved a Belgian federal loan guarantee scheme to support lending to small and medium-size enterprises (SMEs) affected by COVID outbreak. The support will take the form of state guarantees on new loans provided by banks and will complement the existing guarantee scheme approved by the EC on April 11, 2020. To fund the measure, Belgium has reallocated EUR 10 billion of the EUR 50 billion envelope earmarked for the previously approved guarantee scheme. The scheme was approved under the State aid Temporary Framework.

    EC found that the Belgian measure is in line with the conditions set out in the Temporary Framework, as it relates to new loans with a maximum maturity of three years, will grant loans before the end of 2020, provides for appropriate remuneration of the guarantees, and contains adequate safeguards to ensure that the aid is channeled effectively by the banks to the beneficiaries in need. With the exception of micro and small companies, undertakings that were already in difficulty on December 31, 2020 are not eligible for aid under the scheme. EC concluded that the measure is necessary, appropriate, and proportionate to remedy a serious disturbance in the economy of a member state, in line with Article 107(3)(b) the Treaty on the Functioning of EU and the conditions set out in the Temporary Framework. On this basis, EC approved the measure under EU State aid rules.

     

    Related Links

    Keywords: Europe, EU, Belgium, Banking, COVID-19, SME, Temporary Framework, Credit Risk, State Aid Rules, Loan Guarantee, EC

    Featured Experts
    Related Articles
    News

    EBA Issues Erratum for Phase 2 Package of Reporting Framework 3.0

    EBA published an erratum for the technical package on phase 2 of the reporting framework 3.0.

    April 08, 2021 WebPage Regulatory News
    News

    MAS Amends Notice on Related Party Transactions of Banks

    MAS amended Notice 643A that addresses requirements for banks to prepare statements of exposures and credit facilities to related concerns or parties.

    April 08, 2021 WebPage Regulatory News
    News

    ECB Amends Guideline on Euro Short-Term Rate

    ECB has published, in the Official Journal of the European Union, the Guideline 2021/565 on the euro short-term rate (€STR) and this guideline amends the previous ECB Guideline 2019/1265.

    April 07, 2021 WebPage Regulatory News
    News

    EBA Consults on Standards Related to FRTB-SA

    EBA launched a consultation on the draft regulatory technical standards on the list of countries with an advanced economy for calculating the equity risk under the alternative standardized approach (FRTB-SA).

    April 07, 2021 WebPage Regulatory News
    News

    PRA Proposes Rules Related to IRB Approach for Credit Risk

    PRA is proposing, via CP7/21, the approach to implementing new requirements related to the specification of the nature, severity, and duration of an economic downturn in the internal ratings-based (IRB) approach to credit risk.

    April 07, 2021 WebPage Regulatory News
    News

    BoE Outlines Regulatory Treatment of Recovery Loan Scheme of UK

    The UK government launched the Recovery Loan Scheme (RLS) as part of its continued COVID-19 support for UK businesses, as announced by HM Treasury on March 03, 2021.

    April 06, 2021 WebPage Regulatory News
    News

    FSB Addresses G20 on COVID Measures, TBTF Reforms, and Climate Risks

    FSB published a letter, from its Chair Randal K. Quarles, to the G20 Finance Ministers and Central Bank Governors, ahead of their virtual meeting on April 07, 2021.

    April 06, 2021 WebPage Regulatory News
    News

    OSFI Unwinds Temporary Increase to Covered Bond Limit for Banks

    OSFI issued a letter to the deposit-taking institutions issuing covered bonds and announced the unwinding of the temporary increase to the covered bond limit for deposit-taking institutions, effective immediately.

    April 06, 2021 WebPage Regulatory News
    News

    EU Amends CRR and Securitization Regulation in Response to Pandemic

    To support recovery from the COVID-19 crisis, EU has published two regulations to amend the securitization framework, as set out in the Securitization Regulation (2017/2402) and the Capital Requirements Regulation or CRR (575/2013).

    April 06, 2021 WebPage Regulatory News
    News

    HM Treasury Announces G7 Agreement on Green Agenda Ahead of COP26

    HM Treasury announced that G7 Finance Ministers and Central Bank Governors met ahead of COP 26, the 2021 UN Climate Change Conference, and agreed on green agenda.

    April 06, 2021 WebPage Regulatory News
    RESULTS 1 - 10 OF 6821