EU OKs €2.55B In Spanish Aid For Self-Employed Affected By COVID-19

According to a recent press release, the European Commission has approved, under EU State Aid rules, a €2.55 billion (US$3.02 billion) Spanish scheme to compensate certain self-employed and companies, which are following judicial composition agreements, for damages suffered due to coronavirus outbreak. 

The compensation will take the form of public guarantees for repayable new loans granted by supervised financial institutions, and new notes issued on the Alternative Fixed-Income Market. 

Under the scheme, around 15,000 self-employed and companies with endorsed composition agreements with creditors following judicial insolvency proceedings will be compensated for damages incurred between March 14 and June 20, 2020.

The Commission found that the Spanish scheme will compensate damages that are directly linked to the coronavirus outbreak restrictions. It also found that the measure is proportionate, as the envisaged compensation does not exceed what is necessary to make good the damages. The Commission therefore concluded that the scheme is in line with EU State aid rules.

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