Friday, 27 March 2020

Commission approves Italian scheme to protect SMEs affected by Coronavirus outbreak


Commission approves Italian scheme to protect SMEs affected by Coronavirus outbreak

On 25 March the European Commission announced its decision to approve under the state aid rules, an Italian state debt moratorium scheme available to small and medium-sized enterprises (SMEs) affected by the coronavirus (COVID-19) outbreak.

The announcement follows the Commission’s 19 March Temporary Framework to support the economy in the context of COVID-19 based on Article 107(3)(b) of the TFEU.

The Italian scheme covers the postponement of repayments of overdraft facilities, bank advances, ‘bullet loans’, mortgages and leasing operations.

The Commission found that the guarantee aimed to provide liquidity for SMEs will contribute to managing the economic impact of the coronavirus outbreak in Italy.   It concluded that the measures are necessary, appropriate and proportionate to remedy a serious disturbance in the economy of a member state, in line with Article 107(3)(b) of the TFEU and the Temporary Framework.

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