Featured Product

    EC Proposes to Prolong and Adjust State Aid Temporary Framework

    October 02, 2020

    EC is consulting member states on a draft proposal to prolong the State aid Temporary Framework until June 30, 2021 and adjust its scope. The temporary framework was adopted on March 19, 2020 to support economy in the context of the COVID-19 outbreak. 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.

    EC has issued a consultation on the draft proposal to: 

    • Prolong, at the current limits, existing provisions of the temporary framework (including for liquidity support) for an additional six months until June 30, 2021
    • Extend the scope of the temporary framework by enabling member states to contribute to the fixed costs of companies (costs that are not covered by the revenues)
    • Adapt the conditions for recapitalization measures under the temporary framework, in particular for the State's exit from enterprises where the State was an existing shareholder prior to the recapitalization 

    The proposed changes would allow the State to exit from the equity of such enterprises through an independent valuation, while maintaining the safeguards to preserve effective competition in the Single Market. The temporary framework was first amended in April 2020. In May 2020, EC adopted a second amendment extending the scope of the temporary framework to recapitalization and subordinated debt measures. In June 2020, EC adopted a third amendment extending the scope of the temporary framework to further support micro, small, and startup companies and incentivize private investments. The temporary framework was initially set to expire on December 31, 2020, except for recapitalization measures that may be granted until June 30, 2021. 

     

    Related Links

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

    Featured Experts
    Related Articles
    News

    EC Regulation Sets Out Standards for Reporting and Disclosure of MREL

    EC published the Implementing Regulation 2021/763 that lays down implementing technical standards for supervisory reporting and public disclosure of the minimum requirement for own funds and eligible liabilities (MREL).

    May 12, 2021 WebPage Regulatory News
    News

    EBA Report Notes Loan Origination Should Remain in Supervisory Focus

    EBA published a report that examines the convergence of prudential supervisory practices in 2020 and offers conclusions of the EBA college monitoring activity.

    May 12, 2021 WebPage Regulatory News
    News

    APRA Decides to Standardize Submission Date for Quarterly Reporting

    APRA announced the standardization of quarterly reporting due dates for authorized deposit-taking institutions.

    May 11, 2021 WebPage Regulatory News
    News

    ECB Working Group Publishes Recommendations on EURIBOR Fallbacks

    The private sector working group of ECB on euro risk-free rates published the recommendations to address events that would trigger fallbacks in the Euro Interbank Offered Rate (EURIBOR)-related contracts, along with the €STR-based EURIBOR fallback rates (rates that could be used if a fallback is triggered).

    May 11, 2021 WebPage Regulatory News
    News

    Bundesbank Publishes Supporting Documentation for Reporting by Banks

    Bundesbank published a list of "EntryPoints" that are accepted in its reporting system; the list provides taxonomy version and name of the module against each EntryPoint.

    May 11, 2021 WebPage Regulatory News
    News

    EBA Publishes Phase 1 of Reporting Framework 3.1

    EBA published the phase 1 of its reporting framework 3.1, with the technical package covering the new reporting requirements for investment firms (under the implementing technical standards on investment firms reporting).

    May 10, 2021 WebPage Regulatory News
    News

    IOSCO Sees Support for Mandatory Sustainability Reporting

    The Sustainable Finance Taskforce of IOSCO held two roundtables, with global stakeholders, on the IOSCO priorities to enhance the reliability, comparability, and consistency of sustainability-related disclosures and to collect views on the practical implementation of a global system architecture for these disclosures.

    May 10, 2021 WebPage Regulatory News
    News

    APRA to Finalize Capital Adequacy Standard Revisions by January 2022

    Asia Pacific Australia Banking APS 111 Capital Adequacy Regulatory Capital Basel RBNZ APRA

    May 10, 2021 WebPage Regulatory News
    News

    ESMA Issues Guidelines on Outsourcing to Cloud Service Providers

    ESMA published the final guidelines on outsourcing to cloud service providers.

    May 10, 2021 WebPage Regulatory News
    News

    EBA Publishes Data on Deposit Guarantee Schemes

    EBA published annual data for two key concepts and indicators in the Deposit Guarantee Schemes (DGS) Directive—available financial means and covered deposits.

    May 10, 2021 WebPage Regulatory News
    RESULTS 1 - 10 OF 6967