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
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