EC Adopts Temporary Framework to Aid States to Counter COVID-19 Impact
EC has adopted a temporary framework to allow member states to make full use of the flexibility provided by the State aid rules to support economy in the context of the COVID-19 outbreak. In addition to the many other support measures that member states can use under State aid rules, the temporary framework allows member states to guarantee the availability of sufficient liquidity for businesses of all types and preserve the continuity of economic activity during and after the COVID-19 outbreak. The temporary framework provides for five types of aid, including aid in the forms of guarantees on loans taken out by companies from banks; subsidized public loans granted to businesses; guarantees for banks that channel state aid to the real economy; and short-term export credit insurance. The framework will be in place until the end of December 2020.
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Keywords: Europe, EU, Banking, COVID 19, Temporary Framework, State Aid Rules, Credit Insurance, Credit Risk, EC
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