EC Approves Czech Aid To Companies Affected By Coronavirus

The European Commission has approved the Czech government’s scheme to help companies affected by the coronavirus outbreak.The Commission on Monday validated a loan guarantee scheme of around CZK 500 billion (US$22.4 billion) to support lending activities for businesses.

The scheme was approved under the State aid temporary framework adopted by the Commission on March 19, 2020.

“The measure aims at maintaining employment in Czechia and providing support for approximately 280 000 undertakings. We will continue working closely with the member states to ensure that national support measures can be put in place in a coordinated and effective way, in line with EU state aid rules,” said Margrethe Vestager, executive vice-president in charge of competition policy.

The measure aims to give companies better access to external financing and thus enable the pursuit of their activities.

In addition, the European Commission has approved a Czech wage subsidy scheme amounting to CZK 22.9 billion (US$1.03 billion).

By contributing to their wage costs, the scheme supports businesses that would otherwise have to lay off personnel due to the coronavirus outbreak.

Full Content: EU Reporter

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