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
Leading economist; commercial real estate; performance forecasting, econometric infrastructure; data modeling; credit risk modeling; portfolio assessment; custom commercial real estate analysis; thought leader.
Previous ArticleECB Allows Temporary Relief in Leverage Ratio Amid COVID-19 Pandemic
PRA published a statement that explains when to expect further information on the PRA approach to transposing the Capital Requirements Directive (CRD5), including its approach to revisions to the definition of capital for Pillar 2A.
SRB published the work program for 2021-2023, setting out a roadmap to further operationalize the Single Resolution Fund and to achieve robust resolvability of banks under its remit over the next three years.
EIOPA is consulting on the relevant ratios to be mandatorily disclosed by insurers and reinsurers falling within the scope of the Non-Financial Reporting Directive as well as on the methodologies to build these ratios.
US Agencies (FDIC, FED, and OCC) issued a joint statement encouraging banks to cease entering into new contracts that use USD LIBOR as a reference rate as soon as practicable and in any event by December 31, 2021, to facilitate an orderly LIBOR transition.
The Group of Central Bank Governors and Heads of Supervision (GHOS), the oversight body of BCBS, endorsed a coordinated approach to mitigate COVID-19 risks to the global banking system.
HM Treasury extended the consultation period on Phase II of the Future Regulatory Framework (FRF) Review, from January 19, 2021 to February 19, 2021.
ECB finalized guidance on the way it expects banks to prudently manage and transparently disclose climate and other environmental risks under the current prudential rules.
BCBS published a technical amendment to the capital treatment of securitizations of non-performing loans by banks.
PRA published the policy statement PS23/20 on the calculation of stressed value at risk (sVAR) and risks not in value at risk (RNIV) under the market risk framework.
BoE announced that the Data and Statistics Division is planning to move collection of statistical data to the BoE Electronic Data Submission (BEEDS) portal.