Featured Product

    EC Decides to Prolong and Adjust State Aid Temporary Framework

    October 13, 2020

    EC decided to prolong, and extend scope, of the State Aid Temporary Framework to support the economy in the context of the COVID-19 outbreak. All sections of the temporary framework are being prolonged for six months until June 30, 2021, except the section to enable recapitalization support, which is being prolonged for three months until September 30, 2021. EC published a communication to amend the State Aid Temporary Framework in the Official Journal of the European Union. Under the EU State Aid Rules, EC also approved two Swedish schemes to support companies affected by the COVID-19 outbreak.

    The following are the key amendments to the State Aid Temporary Framework:

    • Prolongation of the temporary framework—The temporary framework was initially set to expire on December 31, 2020, except for recapitalization measures that could be granted until June 30, 2021. The amendment prolongs the provisions of the temporary framework until June 30, 2021, except the recapitalization measures that are being prolonged until September 30, 2021. EC will review and examine the need to further prolong or adapt the temporary framework.
    • Support for uncovered fixed costs of companies—The amendment introduces a new measure to enable member states to support, during the eligible period, companies facing a decline of at least 30% in turnover (in the context of COVID-19 outbreak) compared to the same period of 2019. 
    • Exit of the State from previously state-owned companies—EC adapted the conditions for recapitalization measures under the temporary framework, in particular for a member state's exit from the recapitalization of enterprises where the sate was an existing shareholder prior to the recapitalization. The amendment allows the state to exit from the equity of such enterprises through an independent valuation, while restoring its previous shareholding and maintaining the safeguards to preserve effective competition in the Single Market.
    • Extension of the temporary removal of all countries from the list of “marketable risk" countries under the short-term export-credit insurance communication—Taking into account the continued general lack of sufficient private capacity to cover all economically justifiable risks for exports to countries from the list of marketable risk countries, the amendment provides for an extension until June 30, 2021 of the temporary removal of all countries from the list of “marketable risk" countries under the short-term export-credit insurance Communication.

     

    Related Links

    Keywords: Europe, EU, Sweden, Banking, COVID-19, Temporary Framework, State Aid Rules, Credit Risk, EC

    Featured Experts
    Related Articles
    News

    APRA Finalizes Guidance on Management of Climate Change Risks

    The Australian Prudential Regulation Authority (APRA) released the final Prudential Practice Guide on management of climate change financial risks (CPG 229) for banks, insurers, and superannuation trustees.

    November 26, 2021 WebPage Regulatory News
    News

    European Council Adopts Position on Digital Finance Package Proposals

    The European Council adopted its position on two proposals that are part of the digital finance package adopted by the European Commission in September 2020, with one of the proposals involving the regulation on markets in crypto-assets (MiCA) and the other involving the Digital Operational Resilience Act (DORA).

    November 25, 2021 WebPage Regulatory News
    News

    PRA Proposes Rulebook Changes; BoE Extends BEEDS Testing Window

    The Prudential Regulation Authority (PRA) is proposing, via the consultation paper CP21/21, to apply group provisions in the Operational Resilience Part of the PRA Rulebook (relevant for the Capital Requirements Regulation or CRR firms) to holding companies.

    November 25, 2021 WebPage Regulatory News
    News

    EC Proposes New Measures Under Capital Markets Union Package

    The European Commission (EC) has adopted a package of measures related to the Capital Markets Union.

    November 25, 2021 WebPage Regulatory News
    News

    EBA Publishes Standards to Calculate Risk-Weights of CIUs Under CRR

    The European Banking Authority (EBA) published the final report on draft regulatory technical standards for the calculation of risk-weighted exposure amounts of collective investment undertakings or CIUs, in line with the Capital Requirements Regulation (CRR).

    November 24, 2021 WebPage Regulatory News
    News

    FED Outlines Lending Conditions and Supervisory Activities in H1 2021

    The Board of Governors of the Federal Reserve System (FED) published a report that summarizes banking conditions in the United States, along with the supervisory and regulatory activities of FED.

    November 24, 2021 WebPage Regulatory News
    News

    APRA Expects Boards to Strengthen Ability to Oversee Cyber Resilience

    The Australian Prudential Regulation Authority (APRA) recently completed two pilot initiatives in its 2020-2024 Cyber Security Strategy, which was published in November 2020.

    November 23, 2021 WebPage Regulatory News
    News

    FSB Updates List of Global Systemically Important Banks

    The Basel Committee on Banking Supervision (BCBS) published further information related to its 2021 assessment of global systemically important banks (G-SIBs), with additional details to help understand the scoring methodology.

    November 23, 2021 WebPage Regulatory News
    News

    FASB Proposes Improvements to Credit Losses Standard

    The Financial Accounting Standards Board (FASB) is consulting on an Accounting Standards Update and the associated taxonomy improvements for requirements on troubled debt restructurings and vintage disclosures under the credit losses standard (for financial instruments) topic 326.

    November 23, 2021 WebPage Regulatory News
    News

    US Agencies Issue Statement on Crypto-Asset Policy Initiatives

    US Agencies issued a statement that summarizes the work undertaken during the interagency policy sprints focused on crypto-assets and provides a roadmap of future work related to crypto-assets.

    November 23, 2021 WebPage Regulatory News
    RESULTS 1 - 10 OF 7733