EC approves Croatian state aid scheme for exporters

EC approves Croatian state aid scheme for exporters

EC approves Croatian state aid scheme for exporters Izvor: Pixabay (ilustracija

The European Commission has approved a €790 million Croatian liquidity guarantee scheme for export-oriented companies affected by the fallout of the coronavirus pandemic, saying that it is in accordance with EU state aid rules.

"This Croatian guarantee scheme of approximately €790 million will support companies with a certain amount of export activities in these difficult times. We continue to work in close cooperation with Member States to find workable solutions to mitigate the economic impact of the coronavirus outbreak, in line with EU rules," Margrethe Vestager, Executive Vice-President in charge of competition policy, said on Tuesday.

Croatia notified to the Commission under the Temporary Framework a HRK 6 billion (approximately €790 million) loan guarantee scheme targeted at certain companies affected by the coronavirus outbreak.

The support, in the form of State guarantees on loans, will be accessible to all companies whose exports represent at least 20% of their yearly revenue. The guarantees will support lending to those companies, but will not take the form of export aid contingent on export activities, the Commission said.

The scheme aims at limiting the risk associated with issuing operating loans to those companies that are most severely affected by the economic impact of the coronavirus outbreak, thus ensuring the continuation of their activities.

The Commission found that the Croatian measure is in line with the conditions set out in the Temporary Framework. In particular, it covers guarantees on operating loans with a limited maturity and size. It also limits the risk taken by the State to a maximum of 50%. This ensures that support is available at favourable conditions and limited to those who need it in this unprecedented situation. To achieve this goal, the measures also involve minimum remuneration and safeguards to ensure that the aid is effectively channelled by the banks or other financial institutions to the beneficiaries in need.

The Commission therefore concluded that the Croatian guarantee scheme for exporting companies will contribute to managing the economic impact of the coronavirus outbreak in Croatia. 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 Treaty on the Functioning of the European Union and the conditions set out in the Temporary Framework, the Commission said.

The Temporary Framework, recently adopted by the Commission, enables Member States to use the full flexibility foreseen under State aid rules to support the economy in the context of the coronavirus outbreak.

POVEZANE VIJESTI

Comments (0)

Comment sent successfully.

Comment sending failed.

Invalid CAPTCHA

* All fields are required

MOST POPULAR

NAJNOVIJE

READ MORE

NEWS

NEWS

USKOK launches investigation into 13 officials, business people 30.05.2020.

30.05.2020.  |  NEWS

NEWS

NEWS

Croatia's Statehood Day marked with ceremony at St Mark's Square 30.05.2020.

30.05.2020.  |  NEWS

NEWS

NEWS

Croatia confirms one more COVID-19 case 30.05.2020.

30.05.2020.  |  NEWS

NEWS

NEWS

Slovenia ready to declare "administrative" end of epidemic 30.05.2020.

30.05.2020.  |  NEWS

NEWS

NEWS

Croatian State leadership lays wreaths for Statehood Day 30.05.2020.

30.05.2020.  |  NEWS

NEWS

NEWS

Wind park case: Ex-state secretary taken to detention unit after questioning 30.05.2020.

30.05.2020.  |  NEWS

NEWS

NEWS

Police arrests dozen state officials and business people for corruption 29.05.2020.

29.05.2020.  |  NEWS

NEWS

NEWS

PM of Bosnia's Federation and two other suspects handed over to prosecutors 29.05.2020.

29.05.2020.  |  NEWS

PROČITAJTE JOŠ

NEWS

NEWS

USKOK launches investigation into 13 officials, business people 30.05.2020.

30.05.2020.  |  NEWS

NEWS

NEWS

Croatia's Statehood Day marked with ceremony at St Mark's Square 30.05.2020.

30.05.2020.  |  NEWS

NEWS

NEWS

Croatia confirms one more COVID-19 case 30.05.2020.

30.05.2020.  |  NEWS

NEWS

NEWS

Slovenia ready to declare "administrative" end of epidemic 30.05.2020.

30.05.2020.  |  NEWS

NEWS

NEWS

Croatian State leadership lays wreaths for Statehood Day 30.05.2020.

30.05.2020.  |  NEWS

NEWS

NEWS

Wind park case: Ex-state secretary taken to detention unit after questioning 30.05.2020.

30.05.2020.  |  NEWS

NEWS

NEWS

Police arrests dozen state officials and business people for corruption 29.05.2020.

29.05.2020.  |  NEWS

NEWS

NEWS

PM of Bosnia's Federation and two other suspects handed over to prosecutors 29.05.2020.

29.05.2020.  |  NEWS

loader