EC Enhances Austrian Liquidity Assistance Scheme to Ease COVID Impact
EC is amending a previously approved Austrian liquidity assistance scheme to support Austrian enterprises affected by pandemic, in line with the State Aid Temporary Framework. As per the modified scheme, micro or small enterprises can now benefit from the measure even if they were considered in difficulty on December 31, 2019, under certain conditions. EC also increased the total budget of the scheme from EUR 15 billion to EUR 19 billion.
EC concluded that the scheme, as modified, remains necessary, appropriate, and proportionate to remedy a serious disturbance in the economy of a member state, in line with Article 107(3)(b) of Treaty on the Functioning of EU and the conditions set out in the Temporary Framework. On this basis, EC has approved the measure under EU State Aid rules. The scheme, which was originally approved on April 08, 2020, provides a temporary limited amount of aid in the form of direct grants, guarantees on loans and repayable advances, and guarantees on loans and subsidized interest rates on loans. The aim of the original scheme was to enable enterprises affected by the COVID-19 pandemic to cover their short-term liabilities, despite the current loss of revenues caused by the pandemic.
Related Link: News Release
Keywords: Europe EU Austria Banking COVID-19 Credit Risk State Aid Temporary Framework Loan Guarantee EC
Featured Experts
Victor Calanog, Ph.D.
Leading economist; commercial real estate; performance forecasting, econometric infrastructure; data modeling; credit risk modeling; portfolio assessment; custom commercial real estate analysis; thought leader.
Previous Article
ECB Allows Temporary Relief in Leverage Ratio Amid COVID-19 PandemicRelated Articles
Regulators Fine Goldman Sachs for Risk Management Failures
FCA and PRA in the UK, FED in the US, and the authorities in Singapore have fined Goldman Sachs for risk management failures in connection with the 1Malaysia Development Berhad (1MDB).
Canada Hosts International Conference of Banking Supervisors
BCBS announced that OSFI and the Bank of Canada hosted the 21st International Conference of Banking Supervisors (ICBS) virtually on October 19-22, 2020.
FCA Proposes More Measures to Help Insurance Customers Amid Crisis
FCA proposed guidance on how firms should continue to seek to help customers who hold insurance and premium finance products and may be in financial difficulty because of COVID-19, after October 31, 2020.
EBA Issues Opinion to Address Risk Stemming from Legacy Instruments
EBA issued an opinion on prudential treatment of the legacy instruments as the grandfathering period nears an end on December 31, 2021.
ESRB Publishes Non-Bank Financial Intermediation Risk Monitor for 2020
ESRB published the fifth issue of the EU Non-bank Financial Intermediation Risk Monitor 2020 (NBFI Monitor).
HM Treasury Publishes Policy Statement Amending Benchmarks Regulation
HM Treasury announced that the new Financial Services Bill has been introduced in the Parliament.
APRA Initiates Action Against a Bank for Liquidity Compliance Breach
APRA announced that it has increased the minimum liquidity requirement of Bendigo and Adelaide Bank for failing to comply with the prudential standard on liquidity.
PRA Consults on Implementation of Certain Provisions of CRD5 and CRR2
PRA published the consultation paper CP17/20 to propose changes to certain rules, supervisory statements, and statements of policy to implement elements of the Capital Requirements Directive (CRD5).
US Agencies Finalize Rule to Reduce Impact of Large Bank Failures
US Agencies adopted a final rule that applies to advanced approaches banking organizations and aims to reduce interconnectedness in the financial system as well as to reduce contagion risks associated with the failure of a global systemically important bank (G-SIB).
US Agencies Finalize Rule on Net Stable Funding Ratio Requirements
US Agencies (FDIC, FED, and OCC) adopted a final rule that implements the net stable funding ratio (NSFR) for certain large banking organizations.
