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

    EU Agencies Update LCR Rule and Macro-Prudential Policy Recommendation

    The European Commission (EC) published the Delegated Regulation 2022/786 with regard to the liquidity coverage requirements for credit institutions under the Capital Requirements Regulation (CRR).

    May 23, 2022 WebPage Regulatory News
    News

    EBA Publishes Regulatory Standards to Identify Shadow Banking Entities

    The European Banking Authority (EBA) published the final draft regulatory technical standards specifying the criteria to identify shadow banking entities for the purposes of reporting large exposures.

    May 23, 2022 WebPage Regulatory News
    News

    OSFI Discusses Benchmark Rate Transition, Sets Out Work Priorities

    The Office of the Superintendent of Financial Institutions (OSFI) published the strategic plan for 2022-2025 and the departmental plan for 2022-23.

    May 17, 2022 WebPage Regulatory News
    News

    EBA Proposes Standards to Support Secondary NPL Markets

    The European Banking Authority (EBA) is consulting, until August 31, 2022, on the draft implementing technical standards specifying requirements for the information that sellers of non-performing loans (NPLs) shall provide to prospective buyers.

    May 17, 2022 WebPage Regulatory News
    News

    EU Confirms Agreement on Rules on Cybersecurity and Banking Resolution

    The European Council and the Parliament reached an agreement on the revised Directive on security of network and information systems (NIS2 Directive).

    May 13, 2022 WebPage Regulatory News
    News

    EBA Issues Standards for Crowdfunding Service Providers Under ECSPR

    The European Banking Authority (EBA) published the final draft regulatory technical standards specifying information that crowdfunding service providers shall provide to investors on the calculation of credit scores and prices of crowdfunding offers.

    May 13, 2022 WebPage Regulatory News
    News

    EU to Amend Credit Risk Adjustment Rules; ESAs Submit Queries on SFDR

    The European Council published a draft Commission Delegated Regulation to amend the regulatory technical standards on specification of the calculation of specific and general credit risk adjustments.

    May 13, 2022 WebPage Regulatory News
    News

    EU Confirms Agreement on Rules on Cybersecurity and Banking Resolution

    The European Securities and Markets Authority (ESMA) published a paper that examines the systemic risk posed by increasing use of cloud services, along with the potential policy options to mitigate this risk.

    May 12, 2022 WebPage Regulatory News
    News

    MAS Amends Notice 635 and Issues Second Proposal on Green Taxonomy

    The Monetary Authority of Singapore (MAS) published amendments to Notice 635, which sets out requirements that a bank in Singapore has to comply with when granting an unsecured non-card credit facility to individuals.

    May 12, 2022 WebPage Regulatory News
    News

    EC Consults on PSD2 and Open Finance; EU Reaches Agreement on DORA

    The European Commission (EC) published a public consultation on the review of revised payment services directive (PSD2) and open finance.

    May 11, 2022 WebPage Regulatory News
    RESULTS 1 - 10 OF 8201